Which of the following benefits a firm in the aircraft industry through technical economies?

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In the context of the aircraft industry, the benefit derived from technical economies primarily involves the ability to spread fixed costs over a larger volume of output. When a firm operates large fuel-efficient aircraft, it can transport more passengers simultaneously. This larger capacity allows the fixed costs associated with the aircraft—such as development, maintenance, and operational expenses—to be distributed across more ticket sales, effectively reducing the cost per passenger.

This is a key aspect of technical economies, which occur when an increase in production leads to a lower average cost per unit. In industries like aviation, where initial capital and operational costs are substantial, maximizing passenger load on a larger aircraft is critical for achieving economies of scale and enhancing profitability. Consequently, as more passengers are transported, the average cost of operation per passenger decreases, which is a primary advantage for firms in this sector.

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