In situations in which there are substantial economies of scale, the ___ of adding an additional customer is very _ once the fixed costs of the overall system are in place.

Economies of Scale is reduction in average cost of output , when the quantity of production increase. In short run, fixed cost staying in place (same), it lowers down the average variable cost of production.

It happens due to better specialisation of labour & machine, bigger & cheaper input orders, better managed supply chain & supplier connection etc. It leads to firm attaining competitive advantage in their industry.

In situations in which there are substantial economies of scale, the ___________ of adding an additional customer is very _________ once the fixed costs of the overall system are in place.

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In situations in which there are substantial economies of scale, the ___ of adding an additional customer is very _ once the fixed costs of the overall system are in place.