Global Economy

Thursday 10 January 2013

A2 Microeconomics - Economies of scale

Growing in size means adding to factors of production - in economics an addition to factors takes place in the long run (or the long term). All sorts of cost advantages ensue, not least because a large firm can afford to hire/buy the most expensive, most efficient equipment which is then put to good use on a grand scale, far undercutting the smaller competitors. A few examples, set to music, are below:
The video link is here.

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