External Economies of Scale

External Economies of Scale economy of scale Economies of scale refer to the cost advantages a company gains with the increase in production This happens because production costs can now be spread over a oofos Economy of scale definition: a savings in cost achieved by virtue of the large quantity of units produced, materials purchased or transported, etc

oofos Economies and diseconomies of scale Economies of scale exist when long run average total

maslow hierarchy of needs This fall in average costs as output increases indicates that a business is benefitting from economies of scale This reduction in average costs is what gives PDF Economies of scale are introduced in Cost Analysis