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...Chapter economies of scale as businesses grow and their output increases they commonly benefit from a reduction in average costs production total will increase however the cost producing each unit falls this fall indicates that business is benefitting what gives larger competitive advantage over smaller are an important aspect efficiency can be defined occur its short long run when examining it worth looking at both variable fixed but all become for example rent negotiated month contract i e does not alter relation to changes demand or if rises after months then too regarded switch becoming separates s curve made up series curves grows moves one another being progressively lower so reducing represented graph below srac lrac imagine building site with foreman worker role digging trenches oversee earns hour wage capable five metres trench metre would therefore wages supervisor divided by dug equalling per was taken on we now have m three workers which represents decreasing could instead ...