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

3647 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How does an increase in the interest rate affect the level of investment?


What are the potential disadvantages of Trades Unions?


What is a public good?


Evaluate the usefulness a knowledge of perfect competition theory in analysing the behaviour of firms. [15]


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