The lowering of a firm's costs via business expansion is known as ______.

Question

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Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost. Businesses can achieve economies of scale through increased production and improved operational efficiencies.

The Lowering of a Firm's Costs Via Business Expansion Is