The Supply Room, an online school supply store, grew rapidly. As a result of achieving a much larger size, the Supply Room is able to realize (1) volume discounts when buying from its suppliers, and (2) lower transportation costs by shipping in bulk. The best explanation of this is that the Supply Room seems to be experiencing

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The Supply Room is experiencing increasing returns to scale, which means as the scale of their operations grows, they are able to achieve lower costs per unit. This is evidenced by their ability to get volume discounts and lower transportation costs due to bulk shipping.

The Supply Room, an Online School Supply Store, Grew Rapidly