What is one of the potential benefits businesses gain from achieving economies of scale?

Achieving economies of scale allows businesses to reduce their production costs per unit as they increase their output. This occurs because, as a company produces more goods, the fixed costs (such as rent, salaries, and machinery) are spread over a larger number of units, leading to a decline in the cost associated with each individual unit. Additionally, businesses can often negotiate better rates for bulk purchases of materials, improving cost-efficiency further.

Ultimately, this reduction in production costs enables businesses to be more competitive in the market, potentially leading to increased profits and the ability to offer lower prices to consumers. This advantage can also result in gaining a larger market share, as lower prices can attract more customers.

The other choices present circumstances that generally do not indicate a benefit. Higher administrative costs would typically strain a business's finances rather than enhance efficiency, increased consumer prices would likely deter purchases, and limited market reach would restrict growth rather than promote business expansion.