What are scale effect economics? What are some examples?
Scale effect economics is the idea that certain economic activities can become more efficient as they increase in size. This is because the costs associated with production, distribution, and other activities are spread over a larger number of units, resulting in lower costs per unit. Examples of scale effects economics can be seen in large-scale production and distribution, such as Amazon's fulfillment centers and Walmart's massive retail stores. Another example is the airline industry, where larger planes and increased passenger numbers result in cost savings. Additionally, scale effect economics can be seen in banking, where the cost of processing payments decreases as the number of customers increases.
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