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Dynamic economies of scale |
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Dynamic economies of scaleA form of increasing returns to scale in which average cost declines over time as producers accumulate experience, so that average product rises with total output of the firm or industry accumulated over time. See learning by doing, infant industry protection.Similar MatchesScale economiesScale economiesIncreasing returns to scale. Economies of scaleEconomies of scaleAchievement of lower average cost per unit through increased production. Economies of scopeEconomies of scopeThe property that a firm's average cost falls as it produces a larger number of different products. Economies of scopeEconomies of scopeScope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. Internal economies of scaleInternal economies of scaleEconomies of scale that are internal to a firm; that is, the firm's average costs fall as its own output rises. Likely to be inconsistent with perfect competition. Contrasts with external economies of scale. Further SuggestionsExternal economies of scaleDiseconomies of scale Economies of scale Economies of vertical integration |
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