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.




economy of scale is ...
... part of the
Accounting and Business subjects.


Related Terms

franchised monopoly -  More
increasing returns to scale -  More


economy of scale appears in the definitions of these other terms on BusinessDictionary.com

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