Efficiencies in the production and supply of goods, achieved through increased numbers. While the benefits can be internal to an organisation (lower manufacturing or transport costs, for example), they are most commonly associated with the lower unit cost which is passed on to the consumer or end user. Typically businesses find that, as production output increases, they achieve lower costs per unit. However, there can also be Diseconomies of Scale, where increased demand for a product or service means a business has to invest in new infrastructure or technology, causing the unit cost to rise.
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Economies of Scale
What does Economies of Scale mean?
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