Global Economies Of Scale Arise When: Adam Smith, the economist, identified division of labor and specialization as the two most important ways to increase the return on production. Employees would be able to focus on a specific task and, over time, improve the skills required to perform their jobs using these two techniques.
Global Economies Of Scale Arise When
Tasks could then be completed more efficiently and quickly. As a result of such efficiency, time and money can be saved while production levels are increased.
Alfred Marshall, an economist, distinguished between internal and external economies of scale. Internal economies of scale are achieved when a company reduces costs while increasing production. External economies of scale occur within an industry rather than within a firm.
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