The cost per unit of production for a given product falls to an ideal level when production volumes rise with the addition of capacity. It is referred to as the economies of scale.
What is product?
Anything that can be sold is referred to as a “product.” To purchase the item with the aid of money, the item can be touched and seen. Consumer, professional, and industrial items come in a wide range of varieties.
The production phenomena known as “economies of scale” describes how a firm's output level rises with its capacity while its production costs decrease as a result of the growth in size or magnitude of its output.
Hence, the significance of the product is aforementioned.
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