Why is batch production typically cheaper for customers?

Batch production is typically cheaper for customers due to economies of scale, which means that as the quantity of products produced increases, the cost per unit generally decreases. In batch production, groups of identical products are manufactured together in large quantities. This approach allows businesses to spread their fixed costs—such as machinery, overhead, and labor—over many units, resulting in lower production costs for each individual item.

By producing in batches, companies are able to streamline their processes, purchase materials in bulk (which often leads to discounts), and optimize their operations for efficiency. This overall reduction in expenses can be passed on to customers in the form of lower prices, making products more affordable.

While advanced technology can indeed contribute to cost efficiencies, and less skilled labor might lower wage costs, the fundamental reason batch production is cheaper is primarily associated with the economies of scale achieved through mass production techniques.