Economies of Scale: Understanding How Bigger Can Be Better

economies of scale Economies of scale means a business has decreased cost-per-item while increasing their output Diseconomies of scale means that a company is facing increased

Economies of scale allow companies to save a lot on cost per input A company could decide to invest the money from the savings of scaling up the business to spin off What is economies of scale? Economies of scale refer to the cost advantages that businesses can achieve as they increase production and expand their operations