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FIGURE PPT 6-7 In the accompanying figure, item 3 points to the ____.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient, resulting in the average cost per unit of output decreasing with increasing scale.
Conglomerate Merger
A type of merger where two companies operating in unrelated business areas combine their operations.
Diversification
An investment strategy to reduce risk by allocating investments amongst various financial instruments, industries, or other categories.
Perspective of Stockholders
The viewpoint or interests of shareholders in a corporation, often focused on return on investment, governance, and financial health.
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