What can be a result of economies of scale in a business?

Economies of scale refer to the cost advantages a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over a larger number of goods or services. One significant result of achieving economies of scale is a reduction in the cost per unit of input, which includes the costs associated with production, labor, and materials.

As a company increases production, it can negotiate better deals with suppliers due to the volume of orders, leading to lower prices for raw materials. Additionally, larger production runs can lead to greater efficiency in manufacturing processes. All of these factors contribute to a decline in the average cost per unit produced, which can enhance a company's competitive edge by allowing it to offer lower prices or maintain higher margins.

The other options do not reflect the positive outcomes associated with economies of scale. For instance, increased labor turnover and higher operational costs are typically challenges that could arise from mismanagement of human resources or inefficiencies rather than benefits of growing the scale of operations. Similarly, less efficient use of technology contradicts the principle of economies of scale, where investments in technology usually lead to improved productivity and efficiency rather than inefficiencies.