m4 applied economics

• manufacturing business: is any business that uses components, parts, or raw materials to make a finished good.
• Large-scale manufacturing: allows for the mass production of goods using assembly line processes and advanced technologies as core assets.
• Economies of Scale: refer to the cost advantage experienced by a firm when it increases its level of output.
• “per-unit fixed cost” and “quantity produced”: The advantage arises due to the inverse relationship
• production: refers to the economic concept of

  manufacture and involves all activities related to a commodity
• effects of economies of scale on production costs:

  It reduces the per-unit fixed cost.

  It reduces per-unit variable costs
• It reduces the per-unit fixed cost: a result of the increased production.
• It reduces per-unit variable costs:

  This occurs as the expanded scale of production increases
• Manufacturing: is called the engine of the economy
• Manufacturing: creates more quality and gainful employment.