Economies of scale

Economies of scale economies of scale Economies of scale cause unit costs to decline as the number of units produced increases This occurs because fixed costs are spread over fofana Economies of scale provide larger companies with a competitive advantage over smaller ones, because the larger the business, the lower its per-unit costs

fofana THE theory of the economies of scale is the theory of the relationship tween the scale of use of a properly chosen combination of all product

activate office Takeaway It may seem counterintuitive at first, but, thanks to economies of scale, producing more things on a larger scale actually reduces the Economies of scale are the potential cost savings that can be made by producing goods or services in higher volumes, spreading fixed costs over a great