Economies of Scale Explained Think Econ

economy of scale Economies of scale serve as a potent tool for firms to gain cost advantages and expand their market presence The benefits include reduced per-

Takeaway It may seem counterintuitive at first, but, thanks to economies of scale, producing more things on a larger scale actually reduces the pg soft login 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