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Topic: Business
Number of pages / Number of words: 5 / 1230
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By specializing in the production of a certain component, producers can achieve economies of scale. We can conclude this just by analyzing the costs of inputs.

First of all, when a company buys inputs in bulk -- for example, special silicone for production of chips?it takes advantage of volume discounts; in turn the supplier can achieve economies of scale on its part by producing more, and thus reducing average costs...


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We can conclude this just by analyzing the costs of inputs.

First of all, when a company buys inputs in bulk -- for example, special silicone for production of chips?it takes advantage of volume discounts; in turn the supplier can achieve economies of scale on its part by producing more, and thus reducing average costs...


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