How can the Nigerian National Petroleum Corporation achieve internal economies of scale?
The Nigerian National Petroleum Corporation can achieve internal economies of scale through the following ways:
(i) NNPC should have its own training institute, award scholarship to its workers, organise in-service training to its workers.
(ii) NNPC should apply the use of advanced machines, many workers and the application of division of labour etc. which will increase its output and lower the cost per unit.
(iii) NNPC should provide better welfare facilities such as housing scheme, canteen, medical services, transport scheme etc that will motivate its workes for improved efficiency
(iv) The firm should afford its own research laboratory and employ competent researchers to man it.
(v) With its sound financial standing and large size, NNPC should employ managerial experts in different fields.
(vi) NNPC should buy its raw materials in bulk which will lower the prices and get large discount, sell in bulk and save packing and transport costs and possibly should have its own means of advertising on a large scale.
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