MANAGEMENT

Detailed explanation-1: -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. Costs can be both fixed and variable.

Detailed explanation-2: -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-3: -Economies of scale is an economic term that is also known as diminishing marginal cost. The term implies that the cost per unit of production decreases as the firm enlarges its production. Economics of scale usually occurs when the firm expands its production and the average cost of output starts diminishing.

Detailed explanation-4: -Economies of scale refer to the cost advantages a company gains with the increase in production. This happens because production costs can now be spread over a large number of goods. The bigger the size of a company, the bigger the more the cost savings with the increase in production.

Detailed explanation-5: -Economies of scale occur when a company’s production increases in a way that reduces per-unit costs.