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Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and production capacity, its fixed costs are spread out over more units of production, which lowers the average cost per unit. This allows businesses to meet growing demand while maintaining or increasing profitability through lower costs.
Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and production capacity, its fixed costs are spread out over more units of production, which lowers the average cost per unit. This allows businesses to meet growing demand while maintaining or increasing profitability through lower costs.
Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and production capacity, its fixed costs are spread out over more units of production, which lowers the average cost per unit. This allows businesses to meet growing demand while maintaining or increasing profitability through lower costs.