Professional Documents
Culture Documents
of Scale
PRESENTED TO
Mrs. MEGHNAA SHARMA
presented by
group no-5
Neha Srivastava
Riddhi Barman
Ripinku Mathur
Om Shyam
Sandeep Yadav
Rahul Pandey
Economies of Scale
Internal Economies of Scale
Definition:-
When a firm increases its scale of production, the reduced cost
which this firm gets as a result are called Internal Economies.
These are the result of increased division of labor or the use of
improved production methods.
Factors responsible for Internal Economies:-
1. Technical Economies of Scale,
2. Managerial Economies of Scale,
3. Labor Economies of Scale,
4. Marketing Economies of Scale,
5. Financial Economies of Scale,
6. Risk – Bearing Economies of Scale.
External Economies of Scale
Definition:-
They are those benefits which are shared by a no. of firms or industries
when the scale of production in any industry or group industries
increases.
It is a common benefit for all the firms working n the expanding
industry.