economy of scale


Definition
Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls.


Related Terms

franchised monopoly -  More

increasing returns to scale -  More

Related Personal Finance Articles

Loading...

economy of scale in the news

Loading...

Enter your email address to get our free Term of the Day newsletter!

economy of scale is ...

... part of the Accounting and Business subjects.

Search volume for economy of scale

economy of scale is mentioned in these Investment Tips

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z