• when you buy in bulk the price per individual item

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  • is usually lower. This is an economy of scale that allows the company to increase their profit margin by reducing their cost for production. The more items a company can produce at one time, the lower the cost per item will be. For example, if a company needs to buy 1000 units of a particular item, they will likely get a better price if they buy them all at once rather than purchasing them in small quantities.

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      Precious Wright

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