Economies of scale definition

Economies of scale means mass purchasing of goods or services, which results in lower average costs.

Economies of scale means that as a company produces larger numbers of a particular product, the cost for each unit of the product goes down.

Economies of scale means the availability of a base of wider scale to bear and distribute such costs and charges and, hence, give the Fund a preferential negotiation position with different service providers of the Fund.

Examples of Economies of scale in a sentence

• Economies of scale may exist from the inherent cost savings that arise from the presence of functional integration or centralization of management.

• Economies of scale refers to a relation among and between business activities resulting in a significant decrease in the average per unit cost of operational or administrative functions due to the increase in operational size.

• Economies of scale can be achieved in both operational activity and through leveraging collective spend.

• Economies of scale arise from a production process in which the average (or per unit) cost of production decreases as the firm’s output increases.

• Economies of scale refer to a relation among and between business activities resulting in a significant decrease in the average per unit cost of operational or administrative functions due to the increase in operational size.

More Definitions of Economies of scale

Economies of scale means a broader base in terms of size for the loading and distribution of those costs and expenses, thus giving the Fund a differential bargaining position with the fund’s various service providers.

Economies of scale means that as a company produces more of a product the total cost of production goes up.

Economies of scale means that as a company produces more of a product the cost of each unit produced goes down.

Economies of scale means that:

Economies of scale means the greater level of production, the cheaper the cost per unit. And while large-scale production can mean production at a lower cost, it often undermines local production in developing countries, and increases dependence on export crops.

Economies of scale means the tendency for unit costs to be lower with larger output. It helps a country to shift resources towards the production of a restricted number of goods, which increases output and reduces unit cost. Meanwhile, by engaging in international trade, it creates an integrated market larger than any other countries’ markets. See: Krugman, P and Obstfeld,M. (1997) International Economics: Theory and Policy, 4th edition, Massachusetts.

Economies of scale means that: A. as a company produces larger numbers of a particular product, the cost of each unit of the product goes down. B. the more producers there are in an economy the greater the need for intermediaries. C. larger countries enjoy more economic growth than smaller countries. D. as a company produces larger numbers of a particular product, the total cost of producing these products goes down. E. All of the above are true.