What is one benefit of economies of increased dimensions?

One significant benefit of economies of increased dimensions is that they allow large firms to spread fixed costs more effectively. When a firm grows in size, it typically incurs fixed costs such as rent, salaries, and administrative expenses that do not change with the level of production. By increasing production levels, these fixed costs are spread over a larger number of units produced, effectively reducing the cost per unit. This results in lower average costs, which can enhance profitability and provide a competitive advantage in pricing.

In contrast, the other options do not accurately reflect the advantages of economies of scale. Higher costs per unit, an expensive sales process, or reduced product sales volume do not typically align with the concept of increased dimensions in firms. The goal of achieving economies of scale is to lower costs and improve efficiency, which is encapsulated in the ability to spread fixed costs over a larger output.