economies of scale

Achievement of lower average cost per unit through increased production. Bloomberg Financial Dictionary
The decrease in the marginal cost of production as a firm's extent of operations expands. Bloomberg Financial Dictionary

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economies of scale economies of scale scale

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   The theory that it is cheaper and more efficient to produce additional units of a product because the fixed costs of production, such as land and buildings, are spread over a larger amount of output. The marginal cost, or the cost of the last unit of production, drops as more output is produced.

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economies of scale UK US noun [plural] ECONOMICS, PRODUCTION
the reduction of production costs that is a result of making and selling goods in large quantities, for example, the ability to buy large amounts of materials at reduced prices: »

Big public companies frequently enjoy economies of scale and dominant market shares.

achieve/benefit from/create economies of scale »

Selling to a global market would enable us to achieve huge economies of scale.

Compare DISECONOMIES OF SCALE(Cf. ↑diseconomies of scale)

Financial and business terms. 2012.

Look at other dictionaries:

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  • economies of scale — scale effect Reductions in the average cost of production, and hence in the unit costs, when output is increased. If the average costs of production rise with output, this is known as diseconomies of scale. Economies of scale can enable a… …   Big dictionary of business and management

  • economies of scale — pl.n. circumstances, conditions, etc. which encourage mass production of a commodity by lowering its unit cost as greater quantities are produced * * * …   Universalium

  • Economies of scale —   [ɪ kɔnəmɪz ɔv skeɪl, englisch], die Skalenerträge …   Universal-Lexikon

  • economies of scale — pl.n. circumstances, conditions, etc. which encourage mass production of a commodity by lowering its unit cost as greater quantities are produced …   English World dictionary

  • economies of scale — UK US noun [plural] business reductions in the cost of making and selling products that are made possible because a business is very large Thesaurus: discounts and price reductionssynonym units of moneyhyponym …   Useful english dictionary

  • Economies of scale — The decrease in the marginal cost of production as a plant s scale of operations increases. The New York Times Financial Glossary * * * economies of scale economies of scale ➔ scale * * *    The theory that it is cheaper and more efficient to… …   Financial and business terms

  • Economies of Scale — Dieser Artikel wurde auf der Koordinationsseite des WiwiWiki Projekts gelistet um die Bearbeitung effektiver gestalten zu können. Bitte beteilige dich an der Diskussion. Als Skaleneffekt (Skalenertrag, Größenkostenersparnis, Economies of Scale)… …   Deutsch Wikipedia

  • Economies Of Scale — The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an… …   Investment dictionary

  • economies of scale — N PLURAL Economies of scale are the financial advantages that a company gains when it produces large quantities of products. [BUSINESS] Car firms are desperate to achieve economies of scale …   English dictionary

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