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Economies of scale imply that within some range a firm can increase the size of operation and

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User Noddy
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Answer:

The average cost of production decreases.

Step-by-step explanation:

Economies of scale refer to the situation when the increase in output causes the average cost of production to decrease. As production increases, companies become more efficient.

The producers are able to reap the cost advantages as the scale of production increases. This happens because of specialization and division of labor.

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User PattyOK
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