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External economies of scale |
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External 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.Similar MatchesDiseconomies of scaleDiseconomies of scaleDecreasing returns to scale. Scale economiesScale economiesIncreasing returns to scale. Economies of scopeEconomies of scopeThe property that a firm's average cost falls as it produces a larger number of different products. 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. Economies of scaleEconomies of scaleAchievement of lower average cost per unit through increased production. Further SuggestionsEconomies of scopeInternal economies of scale Dynamic economies of scale Economies of scale |
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