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Essay

Economy Of Scale

Essay specific features

 

Issue:

Business

 

Written by:

Elton C

 

Date added:

May 6, 2017

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1336

 

Was viewed:

6568 times

 

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Essay content:

This is because McDonalds hamburgers and French fries share the use of food storage, preparation facilities, and so forth during production. Another example is a company such as Proctor & Gamble, which produces hundreds of products from razors to toothpaste. They can afford to hire expensive graphic designers and marketing experts who will use their skills across the product lines...
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They can afford to hire expensive graphic designers and marketing experts who will use their skills across the product lines. Because the costs are spread out, this lowers the average total cost of production for each product. When more units of a good or a service can be produced on a larger scale, yet with (on average) less input costs, economies of scale (ES) are said to be achieved...
displayed 300 characters

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