This is what i learnt today:)
Economy of scale refers to the reduction in average total cost(ATC) as the business get bigger in size.
Internal economy of scale, whereas purchasing machines, materials to increase output.
External economy of scale(managerial), increase the specialised manager, move to an area where cheap labours are.
Financial economy of scale, borrowing money, take a loan.
Marketing economy of scale, by advertising and marketing.
Diseconomy of scale, the opposite of economy of scale, whereas a increase in ATC as the business get bigger in size.
A diagram about economy of scale, productive efficiency and diseconomy of scale can be drawn.
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You should google 'economis of scope'
ReplyDeleteYou will not be allowed back into Sociology classes until you have emailed me explaining why you did not turn up to your last 3 hour lesson - especially when you had been given homework just for that day.
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