1. Types of economies of scale
And Aaron’s furniture

2. Managerial economies of scale
Larger firms can afford to employ specialist managers and employees.
They have a marketing director, a production director, and a production director.
All these jobs will be done by specialists with skills, qualifications and experience, and will make the firm more effective and hopefully more successful

3. Technical economies of scale
Saving on production costs by improving production methods and equipment.
How do they do this?
Biomass burner?
Quality?

5. Purchasing economies of scale
Discounts for buying in large quantities.

7. Risk bearing economies
Although they are not very diverse (they only sell bedroom furniture) they plan to sell in different markets.

8. Marketing economies

9. Financial economies
A larger firm may benefit from lower interests and more choices of funding. Aaron’s are finding their loan might be expensive!