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Economies of scale |
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Economies of scaleIncreasing returns to scale.Economies of scaleAchievement of lower average cost per unit through increased production.Economies of scale Similar MatchesDiseconomies of scaleDiseconomies of scaleDecreasing returns to scale. 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. Economies of vertical integrationEconomies of vertical integrationProduced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting for companies in the outside marketplace. Dynamic economies of scaleDynamic 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. Economies of scopeEconomies of scopeScope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. Further SuggestionsExternal economies of scaleScale economies Economies of scope |
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