In 1–3 sentences, explain economies of scale.

1 answer:

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Economies of scale are the cost advantages that companies obtain due to size output or scale of operation. The cost per unit of output generally decreases when the scale increases because fixed costs are spread out over more units of output. <span>Economies of scale apply to a variety of organizational and business situations and at various levels, such as a business or manufacturing unit, plant or an entire enterprise.</span>

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