In two to four sentences, explain economies of scale.

Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because of the inverse relationship between the quantity produced and per-unit fixed costs; i.e. the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are spread out over a larger number of goods. Economies of scale may also reduce variable costs per unit because of operational efficiencies and synergies.

pybrothepyro4 pybrothepyro4 · Answer 2 · 2022-05-25T01:09:12+02:00

Answer:

The cost advantage that occurs with greater product output is known as economies of scale. The inverse relationship between quantity produced and per-unit fixed costs results in economies of scale; that is, the bigger the quantity of a good produced, the lower the per-unit fixed cost because these expenses are spread out over a larger number of goods. Because of operational efficiency and synergies, economies of scale may also reduce variable costs per unit.

Explanation:

ifunny is dankreloaded