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

3565 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How does the law of diminishing marginal utility affect the demand for a Veblen good?


What is the purpose of trying to achieve economic efficiency?


What are the effects of a price floor?


What are the Macroeconomic Effects of Currency Fluctuations?


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