The concept of ____________ suggests that as a firm produces more,the more efficient it becomes.

Question

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Economies of scale suggest that as a firm produces more, it can take advantage of lower costs per unit due to increased efficiencies in production. This can come from various sources such as bulk purchasing, technological advancements, and specialization of labor. As a result, larger firms are typically able to operate with a lower cost per unit, allowing them to potentially offer lower prices or greater profits.

The Concept of ____________ Suggests That as a Firm Produces