Question

Cost estimation model which is an effect of economy scale is

Answer 1

Most firms find that, as their production output increases, they can achieve lower costs per unit.Economies of scale are the costadvantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average (unit) costs of production.

Answer 2

Explanation:

Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.