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Economics glossary · Firms and competition

Financial economies

What financial economies means in economics, as one of sources of economies of scale, with an example and a question to test yourself.

Definition
Financial economies
Financial economies are savings on borrowing, because lenders see a large firm as safer and charge it a lower rate of interest.
Example

Can you think of an example of financial economies?

Test yourself

Can you name five internal economies of scale?

Learn it properly: the module

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