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

Ways in which marketing economies of scale leads to falling cost of production

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Answer Text:
Ways in which marketing economies of scale leads to falling cost of production:
-Bulk purchases leads to better buying terms thereby lowering cost.
-Firm transports in large quantities thereby reducing handling cost per unit of output.
-Selling expenses are reduced in terms of management due to its bulk sales and purchases.


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