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Economies of scale

Economies of scale: Managerial Economics
Economies of scale: Managerial Economics

Economies of scale can be described as the phenomenon, where the more you produce (“scale”), the lower the average cost per product. For entrepreneurs, economies of scale are often crucial in their strategy. It forces them to grow faster than the competition, which is the reason why so many startups remain unprofitable for many years.

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Skill Level Intermediate
1h 20m
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Business Accounting Management Leadership

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