Economies of Scale

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  • Created by: Rachelle
  • Created on: 24-04-13 14:12
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  • Economies of Scale
    • Risk-bearing
      • Spreading risks in different markets
    • Managerial
      • Afford specialist help
    • Purchasing
      • Buying in bulk!
    • Marketing
      • One ad --> whole company
    • Technical
      • More advanced machinery
    • Financial
      • Banks more willing
    • DISeconomies of sSale
      • Hard to manage
      • Decisions take longer
      • Bottom hierarchy feels insignificant --> decrease productivity

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