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...Edexcel economics as level unit business behaviour topic revenue costs and profit economies diseconomies of scale notes www pmt education internal these occur when a firm becomes larger average production fall output increases examples can be remembered with the mnemonic really fun mums try making pies risk bearing they expand their range therefore spread cost uncertainty if one part is not successful have other parts to back on financial banks are willing lend loans more cheaply firms because deemed less risky take advantage cheaper credit managerial able specialise divide labour employ specialist managers supervisors which lowers technological afford invest in advanced productive machinery capital will lower marketing budgets across outputs so advertising per than that smaller purchasing bulk buy means each them for example supermarkets buying power from farmers corner shops negotiate better deals there also network gained expansion ecommerce large online such ebay add extra goods cu...