Real economies of scale, Managerial Economics

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Real economies are delineated as those which are associated with a reduction in the physical quantity of inputs like raw materials, varying kinds of labour and various kinds of capital. They are mostly associated with indivisibilities or lumpiness of units of factors of production. The important kinds of real economies are:

1. Production economies

2. Marketing economies

3. Managerial economies 

4. Transport and storage economies


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