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What are the sources of economies of scales?

What are the sources of economies of scales?

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Answer #1

When it comes to sources of the economy of scale, it can be divided into two parts-

1.INTERNAL SOURCES

2.EXTERNAL SOURCES

Types of internal sources are-

a>mass production by using the best machines and technology

b>multiple productions by setting up machines and increasing profitability

c>marketing and advertisements at a big level

Types of external sources are

a>Geographical sources according to demand and need

b>good transportation networks domestically as well as globally to save time and money

c>sometimes intervention of government by tariffs, taxes etc.

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