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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. 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. Scale economiesScale economiesIncreasing returns to scale. External economies of scaleExternal economies of scaleA form of increasing returns to scale in which productivity and thus costs of individual firms depend on the output of their entire industry, rather than just their own. Unlike more conventional (internal) scale economies, these are consistent with perfect competition. Further SuggestionsEconomies of scopeDynamic economies of scale Economies of vertical integration |
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