Economies of scale - Expanding a business - AQA

economies of scale Economies of scale cause unit costs to decline as the number of units produced increases This occurs because fixed costs are spread over

Economies of scale are the potential cost savings that can be made by producing goods or services in higher volumes, spreading fixed costs over a great age of war Economies of Scale Examples Supermarkets are the most common example of economies of scale Since they buy goods in bulk, they avail discounts