The following is a list of various types of economies of scale: (i) The firm can benefit from the specialisation and division of labour. (ii) It can overcome the problem of indivisibilities. (iii) It can obtain inputs at a lower price. (iv) Large containers/machines have a greater capacity relative to their surface area. (v) The firm may be able to obtain finance at lower cost. (vi) It becomes economical to sell by-products. (vii) Production can take place in integrated plants. (viii) Risks can be spread with a larger number of products or plants.
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