The term economies of scale refers to the fact that as the:

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Economies of scale refer to the reduction in the cost of producing a unit of product as the quantity produced in a given period increases. This reduction in cost occurs due to factors such as the efficient use of resources, the specialization of labor, and the ability to negotiate better deals with suppliers. Therefore, as the quantity of product produced in a given period increases, the cost of manufacturing each unit decreases.

The Term Economies of Scale Refers to the Fact That