Explain one economies of scale that a firm may enjoy when it expands its production scale.

1. Technical economies of sale: Large firms can utilize more fully the machines and plant equitments and thus reduce the average cost.

2.Managerial economies of scale: A large firm with a wider scope of specialization can raise efficiency and reduce the average cost.

CY
Answered by Chun Yin L. Economics tutor

3563 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is elasticity of demand


What is an inferior good


Analyse and Evaluate the effects of an reduction in government spending on the economy.


Discuss the extent to which recent changes in monetary policy have impacted upon the UK economy


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning