Economies of scale refers to the reduction in cost per unit as total volume produced increases.

Name: Economies of scale refers to the reduction in cost per unit as total volume produced increases.
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Economies of scale occur when the average cost of production decreases with an increase in the scale of production, resulting in a lower cost per unit. This is because fixed costs are spread over a larger number of units, leading to a more efficient use of resources and lower unit costs.

Economies of Scale Refers to the Reduction in Cost Per