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Larger markets afford economy of scale to pretty much any business. Fixed costs remain fixed, variable costs shrink with increased volume. This reflects in hiri
by DenisM 10y ago
Larger markets afford economy of scale to pretty much any business. Fixed costs remain fixed, variable costs shrink with increased volume. This reflects in hiring too - making twice as many cars does not require twice as many people. If the output grows faster than employment the productivity is increasing.