Refers to the cost advantage that a single firm can achieve as it grows in size and expands its production capacity.
What are the cost savings typically a result of?
These cost savings are typically a result of factors under the firm’s direct control, such as improved production processes, specialisation of labour, and better management practices.
What are internal economies of scale specific to?
Internal economies of scale are specific to the individual firm and are as a result of its internal operations and decisions.
