List and explain the types of economics of scale
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Economies of scale is the competitive advantage that large entities have over smaller ones. The larger the business, non-profit, or government, the lower its per-unit costs. It can spread fixed costs, like administration, over more units of production
Types of Economies of Scale
There are two main types of economies of scale: internal and external. Internal economies are controllable by management because they are internal to the company. External economies depend upon external factors. These factors include the industry, geographic location, or government.
Internal Economies of Scale
Internal economies are a result of the sheer size of the company. It doesn't matter what industry it's in or market it sells to.
External Economies of Scale
A company has external economies of scale if its size creates preferential treatment. That's most often occurs with governments
Economies of scale is the competitive advantage that large entities have over smaller ones. The larger the business, non-profit, or government, the lower its per-unit costs. It can spread fixed costs, like administration, over more units of production
Types of Economies of Scale
There are two main types of economies of scale: internal and external. Internal economies are controllable by management because they are internal to the company. External economies depend upon external factors. These factors include the industry, geographic location, or government.
Internal Economies of Scale
Internal economies are a result of the sheer size of the company. It doesn't matter what industry it's in or market it sells to.
External Economies of Scale
A company has external economies of scale if its size creates preferential treatment. That's most often occurs with governments
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