Economies Of Scale - Definition

economy of scale  Technical: the efficiency gains when a firm increases the scale of its operation yields lower costs per unit For example, buying a bigger factory will cost you Economies of scale allow companies to save a lot on cost per input A company could decide to invest the money from the savings of scaling up the business to

This reduction is known as economy of scale Increased labour supply, better specialization, improved technology, and discovery of new resources or better Economies of Scale occur when the production costs on a per-unit basis decline as the output increases, resulting in cost savings and higher profit margins

In economics and business management, economies of scale is an underlying concept that states how a firm benefits from increasing its level of THE theory of the economies of scale is the theory of the relationship tween the scale of use of a properly chosen combination of all product