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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1336 |
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With external ES, all firms within the industry will benefit. Where Are Economies of Scale? In addition to specialization and the division of labour, within any company there are various inputs that may result in the production of a good and/or service. Lower input costs: when a company buys inputs in bulk - for example, potatoes used to make French fries at a fast food chain - it can take advantage of volume discounts...
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Lower input costs: when a company buys inputs in bulk - for example, potatoes used to make French fries at a fast food chain - it can take advantage of volume discounts. (In turn, the farmer who sold the potatoes could also be achieving ES if the farm has lowered its average input costs through, for example, buying fertilizer in bulk at a volume discount...
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