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Internal economies of scale |
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Internal 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.Similar MatchesEconomies 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 scopeEconomies of scopeScope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. 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. Economies of scaleEconomies of scaleAchievement of lower average cost per unit through increased production. Further SuggestionsEconomies of scaleDiseconomies of scale Scale economies Dynamic economies of scale |
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