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Economies of scale is a concept that demonstrates how production cost per unit of output decreases as the scale of production and, consequently, the volume of output increases. There are a variety of factors that contribute to an inverse relationship between the number of units of output produced and the average cost of production per unit of output. The economies of scale advantage becomes apparent as fixed costs are spread over an increasing level of output. An increase in scale also tends to... więcej
Salem Press Encyclopedia, 2023. 2p.
