Economics help (1 Viewer)

[~Claire~]

just wondering if any one knows the best ways in which a firm can improve its efficiency in relation to capturing economies of scale?

please help, any input would be sincerely appreciated

 

[foram]

just wondering if any one knows the best ways in which a firm can improve its efficiency in relation to capturing economies of scale?

please help, any input would be sincerely appreciated

the generic stuff is

discounts from buying in bulk
large scale production
greater access to funds
specialising
re-use/marketing of by-products

 

[x.Exhaust.x]

just wondering if any one knows the best ways in which a firm can improve its efficiency in relation to capturing economies of scale?

please help, any input would be sincerely appreciated

Firstly, there are two types of economies of scale which can 'improve' efficiency: Internal Economies of Scale and External Economies of Scale. Internal Economies of Scale (refers to cost savings or cost advantages to the firm) are the factors that occur inside the firm's control and External Economies of Scale (results from reductions in costs) are the factors that occur outside the firm's direct control.

A firm can improve its efficiency by:

- Increased specialisation and divison of labour which may lead to further productivity and output
- Increased specialisation of capital (the produced means of production)
- Research and development and technological advancements, leading to new products and processes for a firm
- Better education and training, leading to better employees

The above were all internal economies of scale.

Another way a firm can improve its efficiency are:

- Lower resource costs bought by the firm
- Access to cheaper power and infrastructure
- Improve transport facilities

The above were all external economies of scale.

I hope that helped .

 

[ttong]

Hey, just noticed a misplacement. Im sure that 'Better education and training, leading to better employees' is part of external economies of scale as it is the government who funds education and yeh. Apart from that everything else seems to be spot on. A job well done!

 

[~Claire~]

I hope that helped .[/quote]

it did!!

thank you so much, very nice of you!

 

[x.Exhaust.x]

Np Claire .