1. types
   1. Financial economies
      1. Big firms are safer
      2. borrow at lower rates
   2. economies of construction
      1. big factories are cheaper per sq m to build
   3. use of machinery
      1. more use reduces AC per unit of Output
   4. use of labor
   5. purchasing economies
      1. bulk discounts
   6. marketing economies
      1. Marketing is fixed cost
   7. Distribution economies
      1. bulk
2. def
   1. those forces within the firm which
   2. Decrease AC as size of the firm increases