You overhear a businessman say: "We want to be big because there are economies associated with bigness." What he means is that

Question

Quizplus · Accepted Answer

The statement is referencing economies of scale, which refers to the phenomenon where long-run average cost decreases as more is produced. This can result from spreading fixed costs over a larger output, or from other factors such as increased specialization or bargaining power with suppliers.

You Overhear a Businessman Say: "We Want to Be Big