Also known as economy of scale
the cost advantages that enterprises obtain due to size, throughput, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output
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As quantity of production increases from Q to Q2, the average cost of each unit decreases from C to C1. LRAC is the long-run average cost.
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of cost (production cost). A decrease in cost per unit of output enables an increase in scale that is, increased production with lowered cost. The basis of economies of scale may be technical, statistical, organizational or related factors to the degree of market control.
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Discovered by embedding cosine similarity (sentence-transformers MiniLM, 384-dim).