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:
“Tis very certain that each man carries in his eye the exact indication of his rank in the immense scale of men, and we are always learning to read it. A complete man should need no auxiliaries to his personal presence.”
—Ralph Waldo Emerson (18031882)
Related Phrases
Related Words