Technical Econmies Of Scale

Question 1

1

Answer 1

As businesses grow they begin to make better use of capital/ machinery or have the resources to invest in more

Question 2

2

Answer 2

Further/ increased use of machinery will improve productivity and increase output

Question 3

3

Answer 3

Fixed cost of production eg labour, rent, utilities, over more units

Question 4

4

Answer 4

Lowering unit cost of producing a product

Question 5

5

Answer 5

Allowing business to lower selling priced/ increasing gross profit
Margin