Scale and resource mix ALSO Innovation

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  • Created by: Yo
  • Created on: 23-04-14 12:57

Scale and resource mix

Economies and diseconomies of scale

Economies of scale: unit production fall - business can provide low prices

Internal: production, purchasing

External: skilled workers, suppliers

Diseconomies of scale

Over use of machinery, communication problems

Capital intensive: production based on machinery - reduces unit cost and better

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