Large-Scale Production
Manufacturing at high volume; mass production.
Formula
Average Cost = Total Cost ÷ Output
Real World
Tesla's Gigafactory in Nevada produces batteries at massive scale, significantly reducing the cost per kWh compared to smaller facilities, making electric vehicles more price-competitive.
Exam Focus
Link large-scale production to economies of scale explicitly — state the type (technical, purchasing, managerial) to access top band marks.
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