Question

What economical or marketing concept have u learned in this class that u would think be beneficial for your future and why ?

This is for marketing economic class , I need a 4 5 sentence answer

Answer 1

Economies of scale are the cost advantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average (unit) costs of production.There are many different types of economy of scale and depending on the particular characteristics of an industry, some are more important than others.

Marketing economies of scale

A large firm can spread its advertising and marketing budget over a large output and it can purchase its inputs in bulk at negotiated discounted prices if it has sufficient negotiation power in the market. A good example would be the ability of the electricity generators to negotiate lower prices when negotiating coal and gas supply contracts. The major food retailers also have buying power when purchasing supplies from farmers and other suppliers.