Get premium membership and access revision papers with marking schemes, video lessons and live classes.
Processing. Please wait.

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

External economies of scale

 (5m 0s)
615 Views     SHARE

Download as pdf file

Answer Text:
External economies of scale:
-Refers to benefits which accrue to a firm as a result of growth of the whole industry
Examples of external economies of scale include:
1. Development of infrastructure
2. Access to a pool of skilled labour
3. Development of service/subsidiary industries
4. Collaboration in research and marketing
5. Easy access to raw materials
6. Better management of waste products.