: Economies of Scale and Returns to Scale

Definition ; Economies of scale is a concept of Economics that suggests that when a company reaches a point where the production cost is decreasing due to bulk

Economies of scale refer to the cost advantages a company gains with the increase in production This happens because production costs can now be spread over a

kingofwinner In short, you get more for your money when your organization achieves economies of scale So, while you may incur initial extra costs by investing in new

doofootballs Economies of scale can be defined as: 'the reduction in average costs of production that occur as a business increases its scale of production' Costs in the