econ principle?

The HK Electric Company Limtied plans to expand its business scale in the near future.

It expects that the further expansion of the business will further reduce the unit cost of production.

Which economic principle can be used to support the above idea? Give 2 reasons.

1 Answer

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  • 1 decade ago
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    Economies of scale as expansion of size such as increase in number of power plants or increase number of employees in HK Electric Company Limited can reduce the unit cost of production because workers can enjoy higher degree of division of labour and the resources become more fully utilized.

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