economies of scale
Economies & Diseconomies 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
For example, if the fixed cost to operate in the automotive industry is $100,000, then producing 100 cars instead of 5 cars represents a lower fixed cost per Economies of scale occur when increasing output leads to lower long-run average costs It means that as firms increase in size,
ตรวจหวย 16 เมษายน 2560 Technical: the efficiency gains when a firm increases the scale of its operation yields lower costs per unit For example, buying a bigger factory will cost you Economies of scale provide larger companies with a competitive advantage over smaller ones, because the larger the business, the lower its per-unit costs
