Industry requires economies of scale (Hershey)

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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 Hershey. … This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Industry requires economies of scale (Hershey)" will have a long-term negative impact on this entity, which subtracts from the entity's value.

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