Which of the following are unit cost reductions associated with a large scale of output?

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Economies of scale refer to the cost advantages that a company can achieve as a result of increasing its level of production. This includes reductions in unit costs due to higher levels of efficiency, specialization, and bargaining power with suppliers. This is the only option that directly relates to a reduction in unit costs associated with a large scale of output. Comparative and absolute advantages refer to a company's ability to produce goods at a lower opportunity cost or better quality than its competitors, while factor endowments relate to a country's natural resources and labor force. Diminishing returns occur when additional units of a factor of production yield increasingly smaller returns.

Which of the Following Are Unit Cost Reductions Associated with a Large