22 Identify and explain two possible economies of scale that Burnett could benefit from. [4]

Ch 19 Costs, scale of production and break-even
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22 Identify and explain two possible economies of scale that Burnett could benefit from. [4]

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Burnett manufactures a range of sports shoes. The Operations Director is planning to increase the scale of production at its factory. She hopes it could lead to more than one economy of scale. The extra output would allow Burnett to export its shoes for the first time.
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22 Identify and explain two possible economies of scale that Burnett could benefit from. [4]

Possible KN Points:
• Technical / invest large amounts in R&D
• Marketing
• Risk bearing
• Managerial
• Purchasing/able to buy in bulk
• Financial
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