When we experience economies of scale this means that as production levels rise we make more of something),the cost of supplies and cost of labor that goes into the production,goes down.

Question

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Economies of scale suggests that as production levels rise, the cost of supplies and labor per unit decreases, resulting in lower costs per unit produced. This decrease in cost is due to the spread of fixed costs over a larger number of units. So, the larger the production, the lower the cost of production per unit.

When We Experience Economies of Scale This Means That as Production