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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is Purchasing Economies of Scale?

Author: eric_galvao



Answer:

-An Internal Economies of Scale -Large firms producing Lots of Goods needs Lots of Raw Materials, thus, it can Negotiate with their Suppliers for Discounts -Why? Because Large Firms are the Most Important for Suppliers as they bring the Big Orders and thus have a Large Influence on Revenues for the Suppliers


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