What are the different types of internal economies of scale?
Mar 10, 2023, Posted by : Nia Latham
Internal economies of scale refer to the cost savings that companies can achieve by increasing their production size. These cost savings come from lower costs per unit of production, improved quality, and more efficient use of resources. There are four main types of internal economies of scale: technical, financial, managerial, and marketing. Technical economies of scale relate to improvements in technology and processes that reduce production costs, while financial economies of scale involve the use of debt and equity to reduce the cost of capital. Managerial economies of scale refer to improved efficiency in the management of production, while marketing economies of scale refer to the cost savings from increased sales and market share.MORE