as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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describe the application of the concept of 'economies of scale'.
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economies of scale refers to the cost advantages that a business can achieve by producing a larger quantity of a product. it means that the cost of producing one unit of a product decreases as the quantity increases due to reduction in the cost of materials, equipment, labor and other related expenses.
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