Different types of economies of scale (growth) Flashcards

1
Q

Financial economies of scale

A

larger companies can benefit from better interest deals on loans and wider sources of cheap finance

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2
Q

Marketing economies of scale

A

Large companies can attract specialist buyers who don’t waste money buying stock that will not sell. They also have specialised marketing staff

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3
Q

Technical EOS

A

There are the advantages that large firms have when it comes to the production process

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4
Q

Managerial EOS

A

Large companies have the money to attract specialist and experienced managers who make best decisions

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5
Q

Risk bearing EOS

A

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

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