what is economies of sale?
Vanya,
I think you might be asking about economies of scale which refers to the advantages or benefits that a firm gets by expanding its production capacities or output. It is the basic cause behind the increasing returns to scale to a firm where the cost per unit of output falls as production is increased.
I think you might be asking about economies of scale which refers to the advantages or benefits that a firm gets by expanding its production capacities or output. It is the basic cause behind the increasing returns to scale to a firm where the cost per unit of output falls as production is increased.