_____ refer to the reductions in unit cost achieved by producing a large volume of a product.

Name: _____ refer to the reductions in unit cost achieved by producing a large volume of a product.
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Question

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Economies of scale refer to the reductions in unit cost achieved by producing a large volume of a product. A larger production volume allows for spread out fixed costs and cheaper input prices due to bulk purchasing. This leads to a lower unit cost per product, which in turn increases profitability.

_____ Refer to the Reductions in Unit Cost Achieved by Producing