Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and output, its average costs per unit may fall due to factors such as fixed costs being spread out over more production, bulk purchasing discounts, and workers specializing in specific tasks. Reaching economies of scale helps businesses meet growing demand at lower costs per unit and ensure profitability.
Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and output, its average costs per unit may fall due to factors such as fixed costs being spread out over more production, bulk purchasing discounts, and workers specializing in specific tasks. Reaching economies of scale helps businesses meet growing demand at lower costs per unit and ensure profitability.
Economies of scale refer to cost advantages that businesses obtain due to expansion. As a business grows in size and output, its average costs per unit may fall due to factors such as fixed costs being spread out over more production, bulk purchasing discounts, and workers specializing in specific tasks. Reaching economies of scale helps businesses meet growing demand at lower costs per unit and ensure profitability.