ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks lend money for the purchase of highly expensive technology
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Capital equipment is capable of producing mass units of a product in a short time
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There is an economic boom
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There is sufficient market demand for the product
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Detailed explanation-1: -Technical economies of scale are a type of internal economy of scale. They are economies of scale achieved via technology. That is, larger businesses more readily have the capital to invest in newer and better technology, which can bring them cost advantages smaller businesses are otherwise unable to achieve.
Detailed explanation-2: -You can achieve technical economies of scale by improving the efficiency and the size of your production process. For example: Dividing your production process into separate tasks can increase productivity.
Detailed explanation-3: -Technical economies of scale result from efficiencies in the production process itself.
Detailed explanation-4: -Economies of scale are the advantages that can sometimes occur as a result of increasing the size of a business. For example, a business might enjoy an economy of scale concerning its bulk purchasing. By buying a large number of products at once, it could negotiate a lower price per unit than its competitors.