Economies of scale refers to which of the following?

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Economies of scale refer to the cost advantages of production that a company gains as it grows and produces more. Purchasing and manufacturing products in high volume allow the company to spread fixed costs (like equipment and facilities) over more units of production, resulting in lower average cost per unit. Choice A is partially true, as seeking out customers that will purchase large quantities can contribute to economies of scale, but it is not the only factor. Choices C and D are unrelated to economies of scale.

Economies of Scale Refers to Which of the Following