Get premium membership and access revision papers with marking schemes, video lessons and live classes.
  OR
Processing. Please wait.

 Form 3 Business Studies: Size and location of a firm lessons

Ways through which technical economies of scale leads to low cost of production

 (2m 57s)
855 Views     SHARE

Download as pdf file

Answer Text:
Ways through which technical economies of scale leads to low cost of production:
-Technical economies of scale results in linking of processes of production there by reducing overhead costs, decrease is per unit cost of production.
-It may lead to use of specialized machinery increasing productivity and lowering per unit cost
-It may lead to use of large indivisible equipment at full capacity thus lowering cost of output


|