Achieving economies of scale often requires which of the following?

Achieving economies of scale commonly involves large-scale operations. When businesses increase their production volumes, they can spread their fixed costs—such as administrative expenses, machinery, and facilities—over a greater number of units. This leads to a reduction in the per-unit cost of production, making each item cheaper to produce as output rises.

Moreover, large-scale operations often provide access to bulk purchasing discounts, enhanced bargaining power with suppliers, and the ability to invest in advanced technology that can further streamline processes and reduce operational costs. As a result, businesses that effectively implement large-scale production can become more competitive in the marketplace due to their lower prices and higher profit margins.

In contrast, the other choices do not facilitate economies of scale. For example, decreased production output would generally lead to higher costs per unit; higher fixed costs can actually hinder economies of scale rather than promote them; and increased market competition does not inherently relate to the scale of operations or efficiency in production processes. Thus, large-scale operations are fundamental to realizing economies of scale effectively.