Economies of Scale

In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase. Diseconomies of scale is the opposite.

Read more about Economies Of Scale:  Overview, Economies of Scale and Returns To Scale

Famous quotes containing the word scale:

    The perch swallows the grub-worm, the pickerel swallows the perch, and the fisherman swallows the pickerel; and so all the chinks in the scale of being are filled.
    Henry David Thoreau (1817–1862)