Tag: production
What are 'economies of scale'?
Mar 27, 2023, Posted by Nia Latham
Economies of scale are cost advantages that result from a company's large size. By operating on a large scale, businesses can produce goods and services more quickly and at a lower cost than smaller companies. This allows them to increase their profits and expand their operations. Economies of scale also create a competitive advantage, as larger companies can outspend smaller ones on advertising, research and development, and product development. Companies that can take advantage of economies of scale can become more successful in their industry, as well as in the global market.
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