When the value of a product to a consumer is enhanced when others also consume the good,economies of scale exist.

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Quizplus · Accepted Answer

Economies of scale exist when the cost of producing a good decreases as the quantity produced increases. The value of a product to a consumer may be affected by network effects or social benefits, which can result in increased demand and potentially higher prices, but this does not necessarily lead to economies of scale.

When the Value of a Product to a Consumer Is