Anonymous asked in Business & FinanceCorporations · 1 decade ago

what is meant by economies in scale in strategic managment ?

1 Answer

  • 1 decade ago
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    Economies of scale refer to the 'cost savings' that arise due to the 'Big' size of operations of a firm.

    For example: a Small manufacturing co. might be able to procure soda ash (its raw material) at Rs. 100 per kg. whereas a Big firm is able to procure it at Rs. 90 per kg. because the big firm has large scale operations and buys 'more quantity' from the soda ash vendor

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