Economies Of Scale: Meaning, Types and Benefits

economies of scale 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

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 The basic model of this paper is one in which there are economies of scale in pro- duction and firms can costlessly differenti- ate their products In this