economies of scale.

• What are internal economies of scale?

  Benefits gained from a business's own actions
• What are technical economies of scale?

  Efficiency gains from specialized machinery and mass production
• How do purchasing economies benefit larger businesses?

  By allowing bulk buying for supplier discounts
• What are managerial economies of scale?

  Specialization of management functions in larger firms
• How do marketing economies reduce costs?

  By spreading advertising costs over larger output
• What financial advantages do larger businesses have?

  Access to cheaper loans and lower interest rates
• How do risk-bearing economies benefit larger firms?

  By spreading risks across a wider product range
• What are external economies of scale?

  Benefits from factors outside a firm's control
• How does a specialized workforce benefit firms in a growing industry?

  Reduces training costs due to skilled workers
• How does access to suppliers benefit firms in a larger industry?

  Potentially lowers costs for all firms
• What are diseconomies of scale?

  When average unit costs begin to increase
• What is a main risk of business growth?

  Experiencing diseconomies of scale