The concept of ''economies of scale'' suggests that as a firm produces more, the average cost of goods produced goes down.
Economies of scale are financial benefits businesses enjoy as production becomes more productive because costs may be divided over a larger number of products. The ability of a company to benefit from economies of scale depends on its size; bigger businesses will produce more goods and save more money.
Economies of Scale might be internal or external. While external causes have an impact on the entire sector, internal economies are driven by conditions within a particular firm. That is why when average cost of good goes down, the concept measure in economies of scale.
To earn more about Economics of scale here
https://brainly.com/question/20354469
#SPJ4
