Economies and diseconomies of scale

economies of scale  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 The two concepts economies of scale and economies of size describe what happens to production or costs when the size of the firm changes

Economies of scale are cost advantages reaped by companies when production becomes efficient  Economies of scale occur when more units of a product or service can be produced at lower cost External economies of scale such as infrastructure improvements

Economies of scale are the savings that occur when an entity grows in size and can produce output more efficiently or at lower cost  Learn what economies of scale are, the different types of internal and external economies of scale, what a diseconomy of scale is and relevant examples