A company has been able to lower the average cost of producing a bicycle helmet as it increases the number of helmets it manufactures each day. This company is most likely benefiting from .

The company is benefiting from Economies of Scale.

Explanation:

Economies of Scale is an economic term that describes the advantages obtained by increasing output, which reduces the average cost of production.  This happens because there are fixed costs and variable costs involved in production.  The fixed costs do not increase with increased production, most times.  With efficiencies obtainable from increased production, the average cost per unit decreases.

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