The reduction in unit costs achieved by producing a large volume of a product is referred to as economies of scale.

Name: The reduction in unit costs achieved by producing a large volume of a product is referred to as economies of scale.
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Economies of scale refer to the reduction in unit costs achieved through producing a large volume of a product. This is because fixed costs can be spread over a larger number of units, resulting in lower average costs per unit.

The Reduction in Unit Costs Achieved by Producing a Large