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Economies of Scale - Coggle Diagram
Economies of Scale
Definition:
Economies of Scale
When the cost of production decreases as the company's growth increase
Diseconmies of scale
When the cost of production increases as the company's growth increases
Types of economies of scale
Economies of scale
Internal (inside the business)
Specialisation
Purchasing (bulk buying)
Technological
External (outside the business)
Commercial service
Co-operation
Labour
Disintegration
Diseconomies of Scale
Internal (inside the business)
Co-ordination and control problems
Motivation problems
Communication problems