• Definition: The portion of a market controlled by a company or product.
• Purpose: Provides insights into firm's revenues, growth, and profit margins.
• Note: Doesn't show exact profitability.

• Definition: Decrease in average costs of production when a firm's scale of operation increases.
• Why It’s Cool: Larger firms can serve more consumers cost-efficiently because they can:
  • Buy goods at greater discounts due to big wholesale orders.
  • Make higher profits even when selling at the same price as competitors.

🍔 Example: Think of McDonald's buying potatoes for their fries. They buy so many potatoes that they get huge discounts!

Bigger firms -> More efficiency -> Higher market share -> Even more efficiency! It's like a snowball rolling down a hill, getting bigger and faster.

• Can be measured by value or volume, which may give different results.
• Time periods & market changes can affect results.
• Product type inclusion can influence calculations.

🧮 Example: Imagine comparing the sales of digital downloads (value) vs physical CDs (volume) for a music artist in the 2000s vs now.