managerial economies

How Do You Achieve Internal Economies Of Scale?

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How Do You Achieve Internal Economies Of Scale? Internal economies of scale arise when the cost of producing an item that your business sells decreases as the size of your business expands. That is, as a company grows larger and larger, overall expenses are bound to increase. What are economies of scale and how are

What Companies Benefit From Economies Of Scale?

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What Companies Benefit From Economies Of Scale? Increased profits – Economies of scale lead to increased profits, generating a higher return on capital investment and providing businesses with the platform to grow. Larger business scale – As a business grows in size, it solidifies and becomes less vulnerable to external threats, such as hostile takeover