TeachMeFinance.com - explain Economies of size
Economies of size The term 'Economies of size ' as it applies to the area of agriculture can be defined as ' The concept that the average cost of production per unit declines as the size of the operation grows. One reason farms have been growing in size is to make more economical use of machines capable of covering more ground with less labor, to capture economies of size. Larger sized farms can typically get volume discounts on such inputs as chemicals and seed'.
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