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List Some External Economies of Scale and Some External Diseconomies

question 99

Essay

List some external economies of scale and some external diseconomies of scale that might be realized by an airline in an airport. How do these economies or diseconomies of scale affect the shape of the long-run industry supply curve?


Definitions:

Allowance Method

is an accounting technique that estimates and reports the likely amount of uncollectible accounts receivable as an allowance for doubtful accounts.

General Ledger Account

A comprehensive record containing all the financial transactions of a business.

Aging

A method used in accounting to categorize a company's accounts receivables according to the length of time an invoice has been outstanding.

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