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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is Marketing Economies of Scale?

Author: eric_galvao



Answer:

-Advertising is usually Fixed Cost - Spreads across more Units for Big Firms so AC falls -Firms can also Advertise several Products at the same time, so the Cost per Product to Advertise falls -Big Firms enjoy Brand Awareness - Trusted by Consumers. This means Advertising isn't as Essential.


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