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The main source of Economies of Scale

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fokhrul88 | 19:41 Sun 25th Jan 2009 | Business & Finance
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The main source of economies of scale is large fixed costs. Briefly explain.

Anyhelp is appreciated.
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Avatar Image Rosetta
May depend partly on set up costs. For example if you have to buy a gizmo machine to produce widgets, the more widgets you produce the less the unit price will be per widget.

There are also economies of scale in purchasing widgets. The more you buy the cheaper the unit cost of each widget will be.

I am struggling to remember my economics but I am sure there must be other variables

Does this help
19:54 Sun 25th Jan 2009

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