Economies of scale - Expanding a business - AQA

economies of scale  Economies of scale are the savings that occur when an entity grows in size and can produce output more efficiently or at lower cost  Internal Economies of Scale Internal economies of scale are unique to each organization and are associated with large businesses For instance,

THE theory of the economies of scale is the theory of the relationship tween the scale of use of a properly chosen combination of all product  Economies of scale refer to the cost advantages a company gains with the increase in production This happens because production costs can now be spread over a

These are the benefits of Economies of Scale When there is a massive expansion in an organisation, the cost per unit may increase with the increase in output  Internal Economies of Scale These are those which arise from the expansion of the plant size of the firm They are specific to the individual firm These are