Trusted since 2008
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of...

One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of Scale may occur

Answers

Lydia
Explanation of economies of scale:
• Economies of scale is the saving in average cost of production or unit
costs, which is achieved by increased levels of production.
One example of how Economies of Scale could occur in A Sporting Chance:
• A Sporting Chance might buy in bulk at lower cost
• Costs such as advertising could be spread over the two shops
• May benefi t from better interest rates on loans
• Administration costs may be shared between the shops
• May eliminate competitors
• Easier access to loans
lydiajane74 answered the question on July 23, 2018 at 07:59

Answer Attachments

Next: Explain four negative effects of substance abuse on children’s performance in an ECDE centre

Previous: Citing six reasons, justify why an accounting officer of a procuring entity, may, at any time, prior to notification of tender award, terminate or...

View more Business Studies Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions