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Economy of scale
01
the cost advantages that enterprises obtain due to size, output, or scale of operation
Example
Economies of scale in transportation reduced shipping costs for bulk orders.
The restaurant chain leverages economy of scale to negotiate better prices with suppliers.
Large manufacturers benefit from economy of scale by producing goods at lower costs per unit.
The expansion of the company's production facilities allowed it to achieve economy of scale.
By consolidating its supply chain, the company aimed to capitalize on economy of scale.
