Research has shown that manufacturing costs often fall as the number of units produced by an organization increases.This relationship between cost and production is called

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Economy of scale refers to the phenomenon whereby the average cost of producing a product decreases as the scale of production increases. This occurs because fixed costs are spread over a larger number of units, resulting in a lower cost per unit. This principle has been observed across a wide range of industries and is an important consideration for businesses looking to optimize their manufacturing processes.

Research Has Shown That Manufacturing Costs Often Fall as the Number