|
|
Scale economies |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Scale economiesIncreasing returns to 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. 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. Diseconomies of scaleDiseconomies of scaleDecreasing returns to scale. 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. Economies of scopeEconomies of scopeScope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. Further SuggestionsEconomies of scopeEconomies of vertical integration Economies of scale Economies of scale |
|
|
|