For example, say you had 5 kitchens making cookies in 5 parts of the city. But, then you bought 1 big kitchen, and moved all of your 5 kitchens to this 1 big location.
Due to mass production, we would expect the 1 big kitchen to operate more efficiently, and use fewer employees.
Is there a name for this in econ?
consolidation efficiencies? mass production?