Benefits of Large Scale Production

Introduction: Please read the information below.

Benefits of Large Scale Production

1. Producing on a large scale allows a firm to reap economies of scale and in so doing lower
the costs of production.

2. The lower costs of production allows firms to offer their products at an attractive price
enhancing the competitivenessof the product.

3. Large scale production tends to encourage specialisation and this tends it increase
speed and productivity.

4. Offering a competitive price through reaping economies of scale will tend to increase market
shareand the potential for increased revenue.