Question

Short note on internal economies of scale

Answer 1

Internal economies of scale are firm-specific, or caused internally, while externaleconomies of scale occur based on larger changes outside of the firm. Both types result in declining marginal costs of production, yet the net effect is the same. Internal economies of scale come from the long-term growth of the firm. Examples include: 1.Technical economies of scale: ... Specialization of the workforce: Larger firms can split the production processes into separate tasks to boost productivity.
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