Industry requires economies of scale (Starwood Hotels and Resorts)

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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 Starwood Hotels and Resorts. … This statements will have a short-term positive impact on this entity, which adds to its value.

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