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Explain any internal economies of scale that may be experienced by a firm.

Explain any internal economies of scale that may be experienced by a firm.

Answers

gideon
(a) Managerial economies of scale
- A firm productivity can be increased by employing qualified staff who offer better organisation structures.
(b) Marketing economies
- A firm that sells in large quantities incurs fewer costs in advertising and distribution.
- Financial economies
- A firm with strong financial base can expand their business.
(c) Risk bearing economies
- Large firms reduce risks in market failure through diversification of products or markets.
(d) Technical economies
- This are benefits to a firm duke to specialization of labour and machinery
(e) Research economies
- Research in new methods of production new market sand new products is necessary for firms that are large because its affordable.
(f) Welfare economies
- Workers incentive do motivate their workforce for example, welfare like recreation health, housing and education.
(g) Buying economies
- Division of labour and specialisation.
gideon1 answered the question on October 14, 2017 at 09:40

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