Why are there so few economies of scale in…

Producing goods and services is typically subject to economies of scale - as the volume of output rises, the unit cost of each thing being produced falls. Economies of scale are common - we don’t find it surprising when a large company like Walmart or Amazon or Borders (rip) can drive a smaller “mom and pop” competitor out of business with low prices that the competitor can’t match, and we’d expect that a giant company like Toyota can produce cars much more cheaply than a small boutique manufacturer like Aston Martin.

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