Economies of scale, which refers to decreases in average costs per unit of production as output increases, have important effects on lowering costs. The main reasons for decreasing costs while increasing production output are (1) spreading fixed, advertising, selling, and distributing costs over more units; (2) having specialized employees and systems and equipment like 3-D printers and manufacturing robots, which lead to higher efficiency; and (3) providing discounts on bulk purchases of raw material inputs and component.