Asked by SelinaEconomics πŸ“ˆ

What is economies of scale? And how does it impact cost?

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Sebastien Krier

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Scale economies have brought down the unit costs of production and have fed through to lower prices for consumers. Most firms find that, as their production output increases, they can achieve lower costs per unit.Β By expanding the scale of production, you reduce the average unit cost of production.

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