The word in capital letters has the emphatic stress. Choose the option to which the given sentence relates. JAMES wrote the report. Did Peter write…
The word in capital letters has the emphatic stress. Choose the option to which the given sentence relates. JAMES wrote the report. Did Peter write the report?
Economies of scale reduce cost per unit as production increases. Internal economies: within firm (technical – bigger machines more efficient, managerial – specialized managers, financial – cheaper borrowing, marketing – spread advertising costs).
External economies: benefit all firms in industry from concentration (skilled labor pool, specialized suppliers, knowledge sharing). Industrial clusters develop where external economies exist.
Diseconomies set in beyond optimal size: communication difficulties, coordination problems, worker alienation, bureaucracy. Firms must find optimal scale – neither too small nor too large.
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