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Economies of Scale - Coggle Diagram
Economies of Scale
Financial
Banks
moneylenders
larger firms are safer
rate of interest
risk
Borrowed money
Distribution
unit cost
lorries
transportation of goods
delivered item
Marketing
methods of promotion
advertising
higher distribution of advert= cheaper
Purchasing
Buy larger quantities
Discounts
More you buy, the cheaper each unit will be.
Risk-bearing
Larger firms
other products= help to balance if one fails
spread riks
range of products.
Different markets
Technological
Large firms
Improved technology
more efficient is the technology
Managerial
Grow
Specialist managers
Employ
More effective