Economies of Scale

maddiemurchie23
Mind Map by , created over 6 years ago

Business Studies Mind Map on Economies of Scale, created by maddiemurchie23 on 04/30/2013.

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maddiemurchie23
Created by maddiemurchie23 over 6 years ago
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Economies of Scale
1 Internal
1.1 Types of economies of scale
1.1.1 Managerial
1.1.2 Technical
1.1.3 Financial
1.1.4 Marketing
1.1.5 Purchasing
1.2 Diseconomies of scale
1.2.1 Average cost of output rises as firms increase scale
1.2.2 Motivation
1.2.3 Communication
1.2.4 Management
2 External
2.1 Cheaper suppliers
2.2 Cheaper workforce
2.3 Infrastructure
2.4 Diseconomies of scale
2.4.1 Wages rise
2.4.2 Infrastructure gets overused
3 Average costs fall as firms increase scale

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