Economies Of Scale

Question 1

Technical

Answer 1

Investment into tech to bring the av cost per unit down
The use of specialist, often expensive, capital
Large firms are able to spend more on bigger and more efficient machinery
They are able to spread the fixed costs over greater output

Question 2

Managerial

Answer 2

Employing specialist labour eg accountants lawyers
Division of labour allows staff to focus on particular areas
If an employee is allowed to concentrate on a specific job they are likely to be;
More experienced and efficient and better qualified

Question 3

Financial

Answer 3

Getting a better rate of interest due to be ing considered trustworthy as a larger firm

Question 4

Marketing

Answer 4

Incentive to make business decisions
International marketing schemes to make the most of marketing costs

Question 5

Purchasing

Answer 5

Buying raw materials and bringing av cost per unit down

Question 6

R and D

Answer 6

When you gather knowledge to create and improve existing products and services