ECON OF SCALE

?
View mindmap
  • A fall in LRAC as output increases
  • INTERNAL EOS
    • Financial
    • Risk Bearing
    • Managerial
    • Economies of scale
      • EXTERNAL EOS
        • Labour
          • saturated area = more grads looking for work = low training costs
        • Ancillary
          • Smaller firms supporting established firms in area
        • Co-operation
          • Firms in same industry working together
      • Diseconomies of scale
        • Communicate failures
        • Difficult coordinating tasks
        • control of large firms = demanding
    • Bulk Buying
    • Technological

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economies of scale resources »