Industry requires economies of scale (Panera Bread Company)

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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 Panera Bread Company. … "Industry requires economies of scale (Panera Bread Company)" has a significant impact, so an analyst should put more weight into it. This qualitative factor will lead to a decrease in costs.

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