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Economies of Scale
Cost advantages that a company can achieve by increasing its production or operational size in the target market, leading to lower per-unit costs.
Implications
(Same as Economics of Scale above) The cost advantages gained when a company increases production and lowers the cost per unit, often due to factors like bulk purchasing, specialization, and improved operational efficiency.
Example
Example: A pharmaceutical company achieves economies of scale by manufacturing large batches of medication, reducing costs per unit due to more efficient use of production facilities.
Related Terms
Same as above.
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