When a company expands its market by offering its products to international customers,it can produce more of its products efficiently,thus reducing the overall cost of each individual unit.This is known as _____.

Question

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Economies of scale refers to the cost advantage a company experiences when it produces more of its product, which results in a lower cost per unit. When a company expands its market and produces more, it benefits from economies of scale. Product diversification (A) refers to a company offering different products to appeal to different markets or customers. Product differentiation (B) refers to making a product different from competitors' products to appeal to customers. Monopolistic competition (D) refers to a market structure in which there are many competitors offering similar but not identical products.

When a Company Expands Its Market by Offering Its Products