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Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Diseconomies of Scale
The phenomenon where an increase in production leads to higher costs per unit due to inefficiencies that arise from scaling up operations.
Increasing Returns
An increase in a firm’s output by a larger percentage than the percentage increase in its inputs.
Diminishing Returns
A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.
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