Which businesses does cost per unit reduces as the capacity increases?

[Kera]

I have heard of some businesses that the higher the production level, the lower the cost of production. That means, for such businesses, it is not best if ran small.

Which business has reduced cost of production as the scale of the production increases?

 

[Suba]

In producing goods there are fixed costs and variable costs, fixed costs must be incurred even if you do not produce goods, but variable costs will depend on the amount of production, the more you produce, the higher the variable costs you must incur. So the total cost of production will be smaller if you produce more goods.

 

[Min George]

I know that for poultry business, the cost per unit reduces with more capacity. The cost can be easily spread when it is mass produced.

 

[Augusta]

I think a lot of productssdd produced go through this model.as well. As you increase quantities the price unit will reduce

 

[King Belieal]

My poultry business is a classic model of this. You would just need to add $60 from the production of 150 broilers to produce 200 broilers. And the cost per unit would reduce by almost 20%.

 

[Fidelia]

For my kind of fashion design business, the cost of production is always reduced for big orders that are up to 100 pieces.