Economies of Scale (Global)
Cost advantages from large-scale production/operations globally.
Formula
Average Cost = Total Cost ÷ Units Produced
Real World
Amazon produces its own-brand products (AmazonBasics) at massive global scale, spreading fixed manufacturing and distribution costs across millions of units to undercut rivals on price.
Exam Focus
Specify the type of economy of scale (e.g. purchasing, technical, managerial) rather than stating it generically — this earns higher-level marks.
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