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ECONOMICS THEME 3 - TOPIC 3.3 - REVENUES, COSTS AND PROFITS - Coggle…

- - - - specialization - large firms can appoint specialist workers and buy specialist machinary
      - balanced teams of machines - larger firms can afford more machinery to go alongside workers
      - increased dimensions - e.g if you double the size of the container you can transport more than double
      - indivisibility of capital - some processes require huge items of machinery and investment
      - research and development - bigger firms can carry out large scale R&D
    - - larger firms have more security because they have more assets and therefore less likely to be forced out of business overnight
    - - large companies are able to operate in many markets so if one fails, they have backup
    - - large companies can afford to appoint specialist managers in every field
    - - buying in bulk
      - specialisation
      - distribution
  - - - businesses established in an area with other successful firms find labour is already in the srea
    - - businesses will naturally move to developed areas which will already have things such as transport links
  - - - in a large business people can think efforts go unnoticed
    - - a firm may have to transport products large distances away
    - - it takes much longer and is much more difficult for large firms to respond to change
    - - coordination + control - as a business grows it becomes progressively more difficult to coordinate and keep control of
        
        communication will also be affected
- - - - Short run shut-down point is AVC=AR