One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of...

      

One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of Scale may occur

  

Answers


Lydia
Explanation of economies of scale:
• Economies of scale is the saving in average cost of production or unit
costs, which is achieved by increased levels of production.
One example of how Economies of Scale could occur in A Sporting Chance:
• A Sporting Chance might buy in bulk at lower cost
• Costs such as advertising could be spread over the two shops
• May benefi t from better interest rates on loans
• Administration costs may be shared between the shops
• May eliminate competitors
• Easier access to loans
lydiajane74 answered the question on July 23, 2018 at 07:59


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