As a golf club production company produces more clubs, the average total cost of each club produced decreases. this is because there are scale economies.
Economies of scale are the benefits you get from growing your business. For example, businesses can benefit from economies of scale associated with bulk purchases. By purchasing large quantities of products at once, we were able to lower unit prices than our competitors.
Economies of scale occur when a company benefits from the scale of its operations. There are many efficiencies to be gained as the company grows. For example, serving 1,000 customers in a restaurant is much cheaper and more efficient than serving one.
Learn more about scale economies here:https://brainly.com/question/780900\
#SPJ4
