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...Economies of scale contents what are technical specialisation purchasing the advantages activity munchester taxis is a term used to describe certain benefits that business gains from increasing its production however there may also be disadvantages associated with large these known as diseconomies supposing you become deeply enthusiastic about cornflakes mass produced breakfast cereal decide set up your own company producing in kitchen would able compete existing manufacturers such kelloggs could make profit selling at same price those made by who produces on an enormous probably find unit cost marketing budget and expertise it very difficult for get consumers interested product three important kinds economy linked ability larger firms savings through investing bigger or more effective machinery equipment some examples out below sophisticated systems collate process data can way improve efficiency capacity this technology only affordable businesses operating techniques involving high l...