____________re unit cost reductions associated with a large scale of output.

Question

Quizplus · Accepted Answer

Economies of scale refer to cost reductions that occur as output increases. As production increases, fixed costs can be spread over a larger output, resulting in lower average total costs. This leads to lower unit costs and is a key advantage of large scale production. Comparative advantages refer to the ability to produce a good or service at a lower opportunity cost, while competitive advantages refer to any advantage a company has over its competitors, such as superior technology or marketing. Positive-sum games refer to situations where all players can benefit from cooperation, rather than conflict.

____________Re Unit Cost Reductions Associated with a Large Scale of Output