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GENERAL
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FUNCTION OF
CREDIT
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In General

Credit benefits the entire economy

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Production Marketing Distribution System

Manufacturer-Wholesaler-Retailer-Consumer

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First economic
benefits of Credit Concept of Economies Scale

Fixed cost
Business expenses do not vary in
relation to production
Refers to a manufacturing side,the larger the enterprise, the more the
economies of scale. Variable cost
vary directly with production
Economies of scale-are the cost of production that occurs when an organization
become large or when production increases.

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Fixed cost

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Second economic
benefits
Manufacturer <= wholesaler <=
Retailer <= Consumers
Credit bring to the economy the expansion of the purchasing power of the
consumers.When the purchasing power of the consumers is expanded ,this
increase demand and actual consumption which in turn required a higher
production

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Third economic benefits Of

credit

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