Financial Economies

To operate any business activity, a firm either small or large needs finance. A large scale firm has a generally greater credibility than a small scale firm. Because of its reputation, a large scale firm can obtain finance from banks and also acquire raw materials on credit.

Commercial Economies

A firm needs raw materials to produce output. A large scale form needs more inputs to produce more outputs i.e: it has to purchase raw material in large quantities to produce more output. A large scale firm can obtain raw materials at a cheaper price if it buys them in abundance. Therefore, cost of production significantly reduces which is a huge advantages.

Development In Technology

In modern world, technological development is becoming more and more surprising day by day. New Products emerging from the world's factories and laboratories. The pace of innovations has been so fast that we fails to appreciate just how remarkable many of these developments are. The sight of men walking on the moon, broadcast by Color Television into millions of homes around the world, has made us yawn at things that are only slightly less spectacular

Mixed Economy

Mixed Economy is an economic system which combines in himself the elements of socialism as well as of capitalism. Capitalistic economy operates on the principles of individuals freedom and personal gain. Individuals are free to follow any profession they like and to consume good of their choice. Their wishes are respected by the producers and their sovereignty is well established.