Economies of Scale - an overview

economy of scale  In economies of scale, businesses can lower the average cost of production by making more of a product  Economies of Scale These occur when mass producing a good results in lower average cost Average costs fall per unit

Economy of scope and economy of scale are two different concepts used to help cut a company's costs Economies of scope focuses on the 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

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 this video I explain the idea of what happens to output and costs in the long-run I cover two