A large domestic market such as in the United States makes it possible for U.S.companies to enjoy _________________ in mass production and mass marketing, enabling them to become lower cost producers than their competition in foreign countries.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. A large domestic market allows companies to produce and market goods on a mass scale, leading to lower costs per unit.

A Large Domestic Market Such as in the United States