MANAGEMENT

Detailed explanation-1: -Economies of scale occurs when more units of a good or service can be produced on a larger scale with (on average) fewer input costs. External economies of scale can also be realized whereby an entire industry benefits from a development such as improved infrastructure.

Detailed explanation-2: -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-3: -Economies of scale occur when a company’s production increases in a way that reduces per-unit costs. Internal economies of scale can result from technical improvements, managerial efficiency, financial ability, monopsony power, or access to large networks.