Briefly Explain the Term Economies of Scale

question 76

Essay

Briefly explain the term economies of scale.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability protection, and has the ability to enter into contracts, own assets, and pay taxes.

ACA

An abbreviation for the Affordable Care Act, a comprehensive healthcare reform law enacted in March 2010 aimed at expanding healthcare coverage, reducing costs, and improving healthcare quality.

Full-Time Employees

Workers contracted to work a standard number of hours set by their employer, typically considered to be 35-40 hours per week.

Fair Competition

A market condition in which competitors have equal opportunities to offer goods or services, with minimal barriers to entry.