Can someone explain this in its simplest term please, so i can understand it.
2006-10-24 03:19:12 · 3 answers · asked by Anonymous in Education & Reference ➔ Homework Help
Simple terms: In some conditions, if you produce graeater quantities of one product, you will reduce your costs and get more profits.
2006-10-24 03:26:54 · answer #1 · answered by Bruce W. 4 · 0⤊ 0⤋
It is a balance between the manufacture of an item and the demand for that item. All manufacture companies have what is known as a "run" on each item they make. This "run" is the amount of the item they make.at one time. They try to make enough of the item to satisfy the demand without having a lot left over. The balance between manufacturing and demand is the economies of scale.
2006-10-24 10:25:38 · answer #2 · answered by bettyswestbrook 4 · 0⤊ 0⤋
Cost of making a lot of something is cheaper than making a little of it.
You get to spread your fixed costs over more units. This gives advantages to big producers of items over smaller producers.
2006-10-24 10:23:34 · answer #3 · answered by Dentata 5 · 0⤊ 0⤋