Chapter 31 – Economies of scale

economies of scale  Economies of scale refer to economic efficiencies that result from carrying out a process on a larger scale Scale effects are possible Source: Internal economies of scale refer to the cost advantages a firm can achieve as a result of its own growth and expansion These cost

Economies of scale often refer to the reduction in average total costs for a firm producing a single product for a given scale of plant due to the decline in Economies of scale refer to the notion that average cost falls as the firm expands Conversely, diseconomies of scale occur when expansion incurs increasing

Economies of scale can be defined as: 'the reduction in average costs of production that occur as a business increases its scale of production' Costs in the In economics and business management, economies of scale is an underlying concept that states how a firm benefits from increasing its level of