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A term referring to the fact that for many good, as the level of production increases, the average cost of producing each individual unit declines.

a. Economies of scale
b. Specialization
c. Division of labor
d. Skill

1 Answer

4 votes

Answer:

a. Economies of scale

Step-by-step explanation:

Economies of scale are cost advantages reaped by large firms. As production increases, cost falls.

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