ECON600 Week 6 Discussion American Public University COURSE ECON600: Managerial Economi

ECON600  Week 6 Discussion  American Public University  COURSE ECON600: Managerial Economics  Discuss whether economies of scale have any relevance to such companies as Wal-Mart.  To begin, let's define economies of scale. In more simple terms, to Making a lot of an item so each item costs less refers to a company's cost advantage gained by increasing output and becoming more by producing more with less wastage, resulting in a lower cost-per-unit. This is because the fixed and changeable costs of production are spread across a larger number of units of production. Economies of scale provide big organizations like Walmart and other global corporations a competitive advantage over smaller businesses since their per-unit expenses are lower when they are larger. Correspondingly, as a corporation grows smaller, the cost per unit rises. Consequently, economies of scale might be internal as wel