Principles of Management
Economies of scale refer to the cost advantages that businesses can exploit by expanding their scale of production. As a company increases output, its average costs per unit typically decrease due to the more efficient use of resources, specialized equipment, and division of labor. This concept is central to understanding the early origins of management, external environments and industries, strategies for expanding globally, a firm's micro-environment, competition and strategy, strategic positioning, and the role of external sources of technology and innovation.
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