How can marketing channels achieve economies of scale?

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that arise from producing larger quantities of a particular product. As a marketing channel produces more of a single product, it can take advantage of cost savings such as bulk purchasing discounts, efficient manufacturing processes, and reduced per-unit transportation costs. Therefore, producing large quantities of a single product can help achieve economies of scale in marketing channels.

How Can Marketing Channels Achieve Economies of Scale