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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is Risk-bearing Economies of Scale?

Author: eric_galvao



Answer:

-An Internal Economies of Scale -Big Firms go into different Product areas and Different Markets which can create a Predictable Overall Demand (If Demand for a Product falls in Pakistan, there may be a Different Product in Uganda getting Attention) -Large Firms can take more Risks as its other Activities (products) absorbs the Cost of Failure better


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