In this article we will discuss about scale of production in economics. Also learn about the economies of scale. This is an age of large-scale production. And the present system of production is based on division of labour and specialisation. In any discussion of production theory and production process, we draw a distinction between the short run and long run. [...]
The following points highlight the six limits to Large Scale Production. The six limits are: 1. Financial Diseconomies 2. Managerial Diseconomies 3. Marketing Diseconomies 4. Technical Diseconomies 5. Diseconomies of Risk-Taking 6. External Diseconomies. Large Scale Production: Limit # 1. Financial Diseconomies: An entrepreneur needs finance to expand his business. But finance may not be easily available in the required [...]
In this article we will discuss about Large Scale Production. After reading this article you will learn about: 1. Advantages of Large Scale Production 2. Disadvantages of Large Scale Production. Advantages of Large Scale Production: The following are the merits of large scale production: 1. Internal Economies: Internal economies arise within the firm because of the expansion of the size [...]