Economies of Scale Explained

economy of scale Economies of scale are cost advantages reaped by companies when production becomes efficient Companies can achieve economies of scale by increasing

Effects of Economies of Scale on Production Costs It reduces the per unit fixed cost As a result of increased production, the fixed cost gets spread hoffenheim Economies of scale can be defined as: 'the reduction in average costs of production that occur as a business increases its scale of production' Costs in the