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Economies of Scale

Economies of Scale. Economies of scale refers to the phenomena of decreased per unit cost as the number of units of production increase. The initial investment in capital is diffused through an increase in production, and the marginal cost of producing a good or service decreases when each additional unit of production is added.Economies of scale means a reduction in the per unit costs of a product as a firm's production increases. .

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Economies of Scale

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