. Although, the question was not a popular one it was well tackled by the few candidates that attempted it. Most of them eventually earned high marks as their definitions showed lucid understanding of the principles involved.
They defined internal economies of scale as the advantages which a firm enjoys from the expansion of its scale of production.
Furthermore, candidates presented correct points on how a large firm can maximize the benefits arising from its scale of production and they discussed them very well.
The overall candidates’ performance in the question was very good.
The good candidates did not fail to identify some of the following points in the (b) part:
- technological or technical economies;
- research economies;
- managerial economies;
- welfare economies;
- marketing economies, etc.
