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Meaning of buying economies of scale

 

 

 

Buying economies of scale

 

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Business glossary

 

Meaning of term buying economies of scale :

 

An economy of scale is a situation where a firm is able to gain from lower average costs at higher levels of output. Buying economies of scale often come about because large firms are able to purchase at a lower price than small firms because of the market power they have. An example would be the buying power that supermarkets have over their suppliers.

 

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Buying economies of scale

 

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Meaning of term buying economies of scale

 

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