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:
“I love to weigh, to settle, to gravitate toward that which most strongly and rightfully attracts me;Mnot hang by the beam of the scale and try to weigh less,—not suppose a case, but take the case that is; to travel the only path I can, and that on which no power can resist me. It affords me no satisfaction to commence to spring an arch before I have got a solid foundation.”
—Henry David Thoreau (1817–1862)