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Again this is a case of “it depends”. If you are not a market driver then yes it does.
(‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )
But some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
Nor does demand for your product.
Again this is a case of “it depends”. If you are not a market driver then yes it does. (‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )