Explain the term Economies of Scale. You may use a diagram to help.

Economies of scale is a term used to describe the point at which is a business' operations have grown to a scale that they can operate at a lower unit cost due to reasons such as buying in bulk. This means that the long run average cost is a low as it can be meaning firms are able to make the most profit.
Diagram of the LRAC Curve labelling the minimum efficiency point