Information
here, the larger the volume of production, the lower the total cost per unit. Most large companies with a high production quota are characterized by this cost structure. This is because the total costs are divided by the quantity of articles produced. So the average cost per unit gets smaller. That is why, generally, a larger company has a lower unit cost than a small business. And this saving is usually transferred to the final consumer, who is able to pay a lower price on the market.