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In what ways are large scale organizations able to reduce their cost of production? 

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Large scale organizations able to reduce their cost of production as;

  • They buy in bulk and so enjoy quantity discount
  • They can afford advertising leading to more sales
  • They have bigger bargaining power for low interest loans
  • They are able to diversify products therefore spread risks
  • They employ skilled manpower
  • They can sell in large quantity hence reducing average cost
  • Acquire up to date technology
  • Produce / mass production reducing selling expenses
  • Ability to carry out research into better methods of production
Thanks a lot  this has been very helpful
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