ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One way companies can use cost advantage is by pricing their items close to their competitors, but then they earn more profits by reducing production costs.

Detailed explanation-2: -Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm.

Detailed explanation-3: -Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods.

Detailed explanation-4: -Purchasing economies of scale They are economies of scale achieved via buying in bulk. That is, larger businesses more readily have the cash and output to warrant buying materials in much larger quantities, which can bring them per-unit cost advantages smaller businesses are otherwise unable to achieve.