increasing returns to scale


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. also called economy of scale.

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Our increasing returns to scale were interesting for us to pay attention to and we all felt like things were going well for us.

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Due to the success of the product line, we were fortunate to quickly see increasing returns to scale as a result, and the profit margin was looking quite nice.

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Bill was manufacturing hats and he decided that he needed to ramp up his production because he was told that increasing returns to scale was the most practical method of increasing his profits.

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critical mass returns to scale