Chapter 31 – Economies of scale

Chapter 31 – Economies of scale economy of scale Economies of scale are the cost advantages that a business can exploit by expanding their scale of production The effect of economies of scale treasures of aztec Economies of Scale These occur when mass producing a good results in lower average cost Average costs fall per unit

treasures of aztec What Are Economies Of Scale? The theory of economies of scale was proposed by Adam Smith The theory posits that if economies of scale can be obtained, a

king of kinks In economics and business management, economies of scale is an underlying concept that states how a firm benefits from increasing its level of Short-run average cost curves assume the existence of fixed costs, and only variable costs were allowed to change In sum, economies of scale refers to a