Economies of scale involve a reduction in minimum average costs as a result of an increase in the size of plants and equipment.

Name: Economies of scale involve a reduction in minimum average costs as a result of an increase in the size of plants and equipment.
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Economies of scale refer to the cost advantages that come with increasing the scale of production, such as the ability to spread fixed costs over a larger quantity of output. This results in a reduction of minimum average costs.

Economies of Scale Involve a Reduction in Minimum Average Costs