Economies of Scale Definition + Examples

economies of scale Learn what economies of scale are, the different types of internal and external economies of scale, what a diseconomy of scale is and relevant examples

Economies of scale often refer to the reduction in average total costs for a firm producing a single product for a given scale of plant due to the decline in maslow hierarchy of needs Takeaway It may seem counterintuitive at first, but, thanks to economies of scale, producing more things on a larger scale actually reduces the