Economies of scale


 

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Economies of scale

Increasing returns to scale.

Economies of scale

Achievement of lower average cost per unit through increased production.



Economies of scale

Similar Matches

Diseconomies of scale

Diseconomies of scale

Decreasing returns to scale.


Internal economies of scale

Internal economies of scale

Economies 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 integration

Economies of vertical integration

Produced 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 scale

Dynamic economies of scale

A 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 scope

Economies of scope

Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately.


Further Suggestions

External economies of scale
Scale economies
Economies of scope


 
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