Saturday, September 15, 2018

Economics of scale in case of e-commerc

Economics of scale means percentage Change in average cost of product following 1% increase in output.
For every percentage increase in output there is a drop in average cost this is called economics of scale.

How e-commerce companies attain economics of scale

Economics of scale is the cost advantage that e-commerce platform obtain due to size.The greater the volume the greater the advantage.e-commerce companies like Amazon and Flipkart sells huge no of product in different categories in a large volume their by attaining economics of scale.

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