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The coffee marketing board of Uganda controls 50% of the country’s export of coffee. Its main asset is a large efficient central processing and storage located in the heart of an industrial area which enables economies of scale and a consistent superior c
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Q. The coffee marketing board of Uganda controls 50% of the country's export of coffee. Its main asset is a large efficient central processing and storage located in the heart of an industrial area which enables economies of scale and a consistent superior coffee blend. Discuss possible benefits of the above argument. A. The coffee marketing board of Uganda benefits from producing 50% of the export of coffee, owning assets such as central processing and storage unit, and being located in an industrial area by enjoying economies of scale. A firm is said to be experiencing economies of scale when an increase in the scale of production yields a more than proportionate increase in output. In simpler terms, this can be defined as those aspects of increasing size which lead to falling average costs. There are two types of economies of scale: Internal Economies of Scale- When a firm grows independently of...
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