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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Economies of scale
Hi, can you please explain what economies of scales are?
2 firms have 2 offices, 2 sets of staff, 2 lots of overheads, 2 lots of clients, 2 administration departments, 2 secretarial pools, 2 office managers
Merge the firms and you’ve got 1 office, 1 set of staff,1 lot of overheads, 1 lot of clients, 1 administration department, 1 secretarial pool, 1 office manager
Many of your 2 sets of expenses have been reduced by … economies of scale
OK?
Thank you. Great explanation.
You’re welcome