"Economies of scale" means that as a company produces more of a product, the cost of each unit produced goes down.

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Quizplus · Accepted Answer

Economies of scale occur when the cost per unit decreases as production volume increases. This is because fixed costs, such as machinery and equipment, can be spread over more units of output, reducing the overall cost per unit. This is a common phenomenon in manufacturing and other industries, allowing companies to increase profitability and competitiveness as they grow in size and output.

"Economies of Scale" Means That as a Company Produces More