Economies of scale can provide larger companies with the competitive advantage of lower costs; this advantage...

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Economies of scale can provide larger companies with the competitive advantage of lower costs; this advantage comes with an increase in the break-even point for the business, which can create large losses if the company cannot achieve a sales level beyond the break-even point. Economies of scale can provide larger companies with the competitive advantage of lower costs; this advantage comes with an increase in the break-even point for the business, which can create large losses if the company cannot achieve a sales level beyond the break-even point.