III - ACSAD Economics Report

1. Economies Scale

2. Economies Scale
Economies of scale may be
classified as:
•external economies of scale
•Internal economies of scale

3. Economies Scale
external economies of scale
 refers to those factors which
are outside the firm or
enterprise, but they contribute
efficiency to the unit of
production.

4. Economies Scale
internal economies of scale
 these are the factors inside
the firm which contribute to
the efficiency of the latter.

5. Economies Scale
Note:
both external and internal
Economies of Scale have
became very efficient and
big.

6. Appropriate Techniques
of Production

7. Appropriate Techniques of Production
Based on law of supply and
demand, resources which
are abundant have lower
prices than those who are
scarce.

8. Appropriate Techniques of Production
Two technologies:
Labor-intensive technology
Capital-intensive technology

9. Appropriate Techniques of Production
Labor-intensive technology
 means more labor inputs
and less capital inputs.

10. Appropriate Techniques of Production
Capital-intensive technology
 more capital inputs and
less labor inputs.