Economies of scale are often confused with

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Economies of scale are often confused with learning curves because both concepts involve reductions in per unit cost as the scale of operation increases. Economies of scale refer to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale. Learning curves, similarly, describe how the unit cost of production decreases over time as workers gain experience and efficiency improves, which can be mistaken for or seen as related to economies of scale.

Economies of Scale Are Often Confused with