ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economies of scale are cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit. This is because the cost of production (including fixed and variable costs) is spread over more units of production.

Detailed explanation-2: -Economies of scale are cost advantages companies experience when production becomes efficient, as costs can be spread over a larger amount of goods. A business’s size is related to whether it can achieve an economy of scale-larger companies will have more cost savings and higher production levels.

Detailed explanation-3: -Increased profits – Economies of scale lead to increased profits, generating a higher return on capital investment and providing businesses with the platform to grow. Larger business scale – As a business grows in size, it solidifies and becomes less vulnerable to external threats, such as hostile takeover bids.

Detailed explanation-4: -The cost of industrialization included hard working conditions and environmental downgrades but ultimately industrialization offered jobs to immigrants who couldn’t support their families without a job and benefited the people by offering higher quality products and better transportation through the railways.