economies of scale
Economies of scale refer to the cost advantages that a company can achieve as it increases its production or scales its operations. This concept states that as the volume of production increases, the average cost of production per unit decreases. Thus, larger companies can produce goods or services at a lower cost per unit compared to their smaller counterparts.
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Related Concepts (1)
Similar Concepts
- competitive advantage through productivity gains
- cost efficiency
- cost optimization
- cost reduction
- cost savings
- economic efficiency
- economic equilibrium
- economic growth
- economic scaling
- increased productivity and efficiency
- industry consolidation
- interdependence of economies
- operational efficiency
- scalability
- synergies and economies of scale