economy of scale Definition

InvestorWords.com

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.

This content can be found on the following page:

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback@investorguide.com

Tools

email to a friend
print this definition
cite this definition
link to this page

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

forward integration, low cost strategy, nonlinearity, vertical market system (VMS), constant returns to scale, and

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