Large companies can typically lower costs per unit of production, meaning that large size allows for

Question

Quizplus · Accepted Answer

Scale economies refer to the cost advantages a company can achieve by increasing production. As the size of the company and production volume increases, the fixed costs can be spread over a larger number of units, resulting in lower costs per unit. Therefore, large companies can typically lower costs per unit of production through scale economies.

Large Companies Can Typically Lower Costs Per Unit of Production