What is economies of scale?

economy of scale  Economies of Scale refer to the cost advantage experienced by a firm when it increases its level Effects of Economies of Scale on Production Costs It reduces the per unit fixed cost As a result of increased production, the fixed cost gets spread

The Economies of Scale · Add to favorites · Download Citation · Track Citations · Permissions · Reprints Share on  External economies of scale External economies of scale result from external factors outside the company's control, such as the industry,

Economy of scope and economy of scale are two different concepts used to help cut a company's costs Economies of scope focuses on the Economies and diseconomies of scale Economies of scale exist when long run average total