What do you understand by economies to scale. Discuss any four internal economies of scale

Economies of scale refers to the benefits that a firm enjoys due to expanding its scale of production.

Internal economies

• Administration: When a firm expands, its administrative expenses are distributed over greater output and the per unit cost decreases.
• Financial: Large firms have a good reputation hence can get loans from financial institutions.
• Marketing: Large firms sell their products easily since they are able to engage in sales promotion methods
• Technical:  Due to their financial capacity, large firms can afford capital goods that enables them to produce superior products.