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Introduction: Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale. This concept is fundamental in production and operational strategy, allowing businesses to lower their costs, improve competitive positioning, and enhance profitability as they grow. Economies of scale can be achieved through a variety of mechanisms, including purchasing, managerial, financial, and technological efficiencies, and are a key driver behind business expansion and market dominance strategies.
Types of Economies of Scale:
Leveraging Economies of Scale: