JAMB - Economics (2013 - No. 18)
If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys
economies of scale
specialization
division of labour
diseconomies of scale
Explicació
Economies of scale is a proportionate saving in costs gained by an increased level of production. This means that, a firm begin to enjoy certain benefits such as a reduction in its direct and overhead cost as its scale of transaction and operation expands.