The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.

Name: The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.
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This is the basic premise of economies of scale. With an increase in production volume, fixed costs can be spread over a larger number of units, resulting in a reduction in the average cost per unit.

The Basic Notion of Economies of Scale Is That as a Plant