Industry requires economies of scale (Apparel Retail Industry in U)

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Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Apparel Retail Industry in U. … "Industry requires economies of scale (Apparel Retail Industry in U)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.

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