What is the meaning of the term economies of scale?
David Mageller
If you love what you do, you'll never work a day in your life - Someone
The text book definition is when "cost per unit falls as output rises." If Apple only produces one iPhone, it'll be pretty expensive as there are a lot of fixed costs. If they produce 10 iPhones, it'll likely be a little cheaper. If they produce 1 million iPhones, it will be significantly cheaper. This is 'economies of scale'.
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