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 Form 3 Business Studies: Size and location of a firm lessons

Ways through which technical economies of scale leads to low cost of production

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Answer Text:
Ways through which technical economies of scale leads to low cost of production:
-Technical economies of scale results in linking of processes of production there by reducing overhead costs, decrease is per unit cost of production.
-It may lead to use of specialized machinery increasing productivity and lowering per unit cost
-It may lead to use of large indivisible equipment at full capacity thus lowering cost of output


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