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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 MatchesInternal 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. 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. 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 scopeEconomies of scope Diseconomies of scale |
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