Why can High Fixed Costs influence Economies of Scale?

-Economies of Scale can be Huge if there are High Fixed Costs and Low Variable Costs. -Robot Based Assembly Lines are Expensive to Set up, but Reduces the Labour needed to Produce each Unit. Fixed Costs Rise (Loans to buy the Equipment) Variable Costs fall (Less Labour) -As the Firm grows from using the Large Economies of Scale, other Firms may just have to dot he Same, or Quit. This leads to only a Few Firms Dominating