economies of scale Flashcards
1
Q
examples of economies of scale
A
Big supermarkets are a good example of this, as they have large warehouses that can house bulk purchased goods. A local greengrocer lacks the space for bulk purchasing, so has to pay more for less.
for example walmart using purchasing economies of scale allowing them to buy the goods they need at a lower price
2
Q
examples of diseconomies of scale
A
d of s in the nhs through lack of motivation through being underpaid leading to an increase in lrac
