A cost decrease refers to the reduction in the price or expense associated with producing or purchasing goods and services.
Imagine going shopping during a sale. The prices of items have been reduced - this is similar to cost decrease where costs involved in production or purchase go down.
Economies of Scale: Reductions in cost per unit resulting from increased production, realized through operational efficiencies.
Deflation: A decrease in the general price level of goods and services often caused by a reduction in the supply of money or credit.
Cost Efficiency: The relationship between output (goods produced) and input (resources used), where costs are minimized.
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