Economies of scale
31 ديسمبر 2021 2021-12-30 20:49Economies of scale
Give an example of economies of scale
a factory will be able to produce 1,000 cans of tuna at a far lower price per can than one. So in short – the more a business produces, the lower it costs them, and in turn, the lower it can charge customers.
Businesses benefit from economies of scale when long-run average costs fall as production levels rise. Lower unit prices occur as a result. For example, a factory will be able to produce 1,000 cans of tuna at a far lower price per can than one. So in short – the more a business produces, the lower it costs them, and in turn, the lower it can charge customer
Supermarkets can benefit from economies of scale because they can buy food in bulk and get lower average costs.
Economies of scale refer to the lowering of per unit costs as a firm grows bigger.
Examples of economies of scale include: increased purchasing power, network economies, technical, financial, and infrastructural
Economies of scale occur if, as the firm increases its output, cost per unit of production falls. Example: Expedia