Company Stock

Monday, 26 October 2015

3. Technical Economies
The larger firm can afford to use different methods of production.
Large firms can afford to employ specialist workers and machines. They can divide up the production process into specialized tasks so that production becomes faster as each worker becomes an expert in their particular job. In small firms thee are simply not enough workers or specialized machinery to make this profitable.

Large firms can also afford to research and develop new faster methods of production and new products. The costs may be high but it is spread out over a very large Output.

The larger the firm the more transport it needs to carry materials and products to and fro. As a firm grows in size it can afford to use large types of transport, like juggernauts, or, in the case of oil companies, supertankers.

4. Risk – bearing Economies
Running a firm is a risky business and clearly the bigger the firm the more things can go wrong. Therefore larger firms try to overcome this risk in a number of ways.

Click this for the same Chapter..

  1. Dan Moynihan & Brian Titey. (2015). Economics, A Complete Course for IGCSE and O Level: University of Cambridge International Examination.

_________________________________________________________________________________________________

Dan Moynihan & Brian Titey. (2015). Economics; A Complete Course for IGCSE and O Level. 2015. hlm 89

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

nowathome

Love life! Sharing and caring!

Tales of life

Life is what you make it

SUGIH forever

Prince Dreamer constructs all his dreams!

%d bloggers like this: