Different types of economies of scale (growth) Flashcards
Financial economies of scale
larger companies can benefit from better interest deals on loans and wider sources of cheap finance
Marketing economies of scale
Large companies can attract specialist buyers who don’t waste money buying stock that will not sell. They also have specialised marketing staff
Technical EOS
There are the advantages that large firms have when it comes to the production process
Managerial EOS
Large companies have the money to attract specialist and experienced managers who make best decisions
Risk bearing EOS
Large companies benefit from wider more diversified product range. This means they are better able to withstand the risk of a fall in demand for one good/service