What Are Economies of Scale? Definition, Types & Example

economies of scale  economy of scale, in economics, the relationship between the size of a plant or industry and the lowest possible cost of a product When a factory increases In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the

In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the As a business grows, it can experience economies of scale close economies of scale Where the average costs fall as the

Risk-bearing economies of scale As a firm becomes larger, it's able to grow their product range This allows them to diversify their risk as they are not 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