economies of scale

economies of scale   Dan marriage of convenience

Economies of scale is a term used to describe situations when the cost of producing a single unit of product decreases when the total number of units

Economies of Scale What is economies of scale? Economies of scale refer to the cost advantages that businesses can achieve as they increase production and expand their operations

royal kludge rk84 Technical: the efficiency gains when a firm increases the scale of its operation yields lower costs per unit For example, buying a bigger factory will cost you What does this do to output? If output goes up by more than λ, we have an economy of scale (also known as increasing returns to scaleSituation that exists when