Economies of scale are the cost savings associated with a larger production size of certain product, the larger the production scale, the lower the perunitproductcost.
Economies of scale are the cost savings associated with a larger production scale (size) of certain product, the larger the production scale, the lower the perunitproductcost.
Alvarez is banking that fewer, more robust partnerships will yield economies of scale: As each distributor carries more product into stores, the overall per-unit cost of distribution will drop.