What are some facors that give rise to economies of scale? and Diseconomies?© BrainMass Inc. brainmass.com June 22, 2018, 5:27 am ad1c9bdddf
Economies of scale can be termed as the increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods. Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach.
There are two types of economies of scale:
External economies - the cost per unit depends on the size of the industry, not the firm.
Internal economies - the cost per unit depends on size of the ...
What are some factors that give rise to economies of scale? and Diseconomies?