Economies of scale means that greater levels of production result in higher costs per unit.

Name: Economies of scale means that greater levels of production result in higher costs per unit.
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Question

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Economies of scale refer to the phenomenon where as production levels increase, the average cost of production decreases due to factors such as spreading fixed costs over a larger output, increased specialization, and better bargaining power with suppliers. Therefore, it results in lower costs per unit.

Economies of Scale Means That Greater Levels of Production Result