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Economies of Scale
The cost advantage achieved when increasing the scale of production leads to a reduction in the average cost of each unit produced.
Diseconomies of Scale
The phenomenon where companies experience an increase in average costs per unit when production is scaled up beyond a certain point.
Specialized Activities
Tasks or operations that require specific expertise or skills, often focused on a particular aspect of a business or industry.
Economies of Scale
The cost advantage that arises with increased output of a product, resulting from efficiencies in production processes.
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