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An example of external economies of scale is when freight trucks were invented, allowing businesses all over the world to benefit from larger scale delivery services. Since the invention of freight trucks was not something controlled by the individual companies, but they still benefitted from the invention, this is considered an external economy of scale.
Wiki User
∙ 9y ago
Wiki User
∙ 11y ago- Economies of Concentration -- when a number of firms in the same or related industries locate close together, they are able to gain mutual advantages through better transport facilities, the training of a pool of skilled labour and supplying each other with sources of components and market outlets. This is called a 'cluster affect'
- Economies of information -- In a large industry, it is worthwhile for specialist firms and for public bodies such as universities to undetake research and to provide information, form which all firms can benefit.
- Economies of Disintegration -- there may be circumstances when vertically linked production processes can be provided more efficiently by independant specialist firms. An obvious example occurs in the case of indivisibilities. If a firm is too small to use continuously plant or machinery that can't be built on a smaller scale, it makes sense to buy supplies from an independant firm that can use the plant effieciently because it supplies a number of firms in the industry.
Wiki User
∙ 13y agosocial economy
technical economy
marketing economy
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What is the economies of scale?
Internal economies of scale arise when the cost per unit
What does the writer mean by diseconomies of sale?
Not profiting from economies of scale, because there are no economies of scale. That is meant by diseconomies of scale.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
What are the sources of economies of scale?
The economies of scale attainable from large scale production fall into two categories. Internal and External.
What is economic of sales?
Economies of scale are factors which cause the average cost of production to decrease as the volume of its output is increased. It has two types: the internal and external factors.
What are the three main types of economies?
Command, traditional, and market economies
What are the Types of Returns to scale?
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
Of what significance is economies of scale in planning the establishment of commercial enterprise?
OF WHAT SIGNIFICANCE IS ECONOMIES OF SCALE IN THE ESTABLISHMENT OF COMMERCIAL ENTERPRISE?. economies of scale
What is the economies of scale?
Internal economies of scale arise when the cost per unit
Define economies of scale How does this relate to returns to scale Cite and briefly discuss the main determinants of economies of scale?
Cite and briefly discuss the main determinants of economies of scale.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
What does the writer mean by diseconomies of sale?
Not profiting from economies of scale, because there are no economies of scale. That is meant by diseconomies of scale.
What are the sources of economies of scale?
The economies of scale attainable from large scale production fall into two categories. Internal and External.
What is economic of sales?
Economies of scale are factors which cause the average cost of production to decrease as the volume of its output is increased. It has two types: the internal and external factors.
What is the importance of economies of scale?
no
Do multibank holding companies have economies of scale?
Another important advantage that MBHCs have over individual banks is economies of scale
What are cooperatives?
cooperative society is a retailers cooperative is a type of cooperative which employs economies of scale on behalf of its retailer member
