CramPuppy - Free Revision Notes » Igcse » Economics » Internal Economies of Scale
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Date: Sun, 21 May 2006 Time: 12:00 AM
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Internal Economies of Scale
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Scale: level of output
(Internal) Economies of Scale: cost advantages that a business enjoys in the form of lower cost per unit/average cost when the level of out produced/scale of production increases
Financial Economies
Financial economies: cost savings that arise from the way in which large firms raise money
1. A large firm can borrow money from different sources more easily
2. Large firms have more assets which they can use to re-pay loans (exchange for loans) or sell to gain cash
3. They can borrow easily since thay aren't as risky
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by: Admin
Total views: 969
Word Count: 450
Date: Sun, 21 May 2006 Time: 12:00 AM
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