Question

what is economics of scale ?

Answer 1

i think you mean *economies* of sale. Economies of sale, as the name implies, are what's responsible for the prices of certain products. Suppose a certain iPhone costs $500,000 today. It is very pricey because it is newly released and very famous. However, 10 years later, the iPhone has developed into a iVideophone or something that is 10x better than the iPhone, yet the price of this new iVideophone is just around $600,000. As you can see, the price does not increase as much as the quality did. This is because economies of sale is all about expanding the scale of production. And since they have many products available, the companies can afford to lessen the price of their products, no matter how high-quality it is.

does that help?

Answer 2

is it the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

Answer 3

Thank You very much

Answer 4

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Answer 5

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Answer 6

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