1.5.1—Economies and diseconomies of scale Topic Practice
1.5.1—Economies and diseconomies of scale Topic Practice
Students practise explaining how growth changes average costs—identifying technical, managerial, or marketing economies—or how size triggers coordination or motivation problems.
How this is tested
- explain two diseconomies of scale using evidence from a company’s decentralised factory structure
- outline two economies of scale achieved through a merger or takeover, referencing case-study integration benefits