Industry requires economies of scale (Inditex (Zara))

Last Updated by Anonymous | Update This Page Flag this page Delete This Page

rating: 0+x

Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Inditex (Zara). … This qualitative factor will lead to a decrease in costs. "Industry requires economies of scale (Inditex (Zara))" will have a long-term negative impact on this entity, which subtracts from the entity's value.

Affected Investments