Economies of scale are the cost advantages that enterprises obtain due to their scale of operation (typically measured by amount of output produced), with cost per unit of output decreasing with increasing scale.
Economies of scale examples
Diagram Economies of Scale. ...
Tap Water – High fixed costs of a national network. ...
Specialisation – car production. ...
Bulk Buying – Supermarkets. ...
Marketing Economies. ...
Risk Bearing – e.g. developing new drugs. ...
Container Principle – more efficient transport and packaging.
