The simple meaning of economies of scale is doing things more efficiently with increasing size. Common sources of … See more

Some of the economies of scale recognized in engineering have a physical basis, such as the square–cube law, by which the surface of a vessel increases by the square of the dimensions while the volume increases b… See more

Economies of scale is related to and can easily be confused with the theoretical economic notion of returns to scale. Where economies of scale refer to a firm's costs, returns to scale describe the relationship between in… See more

The first systematic analysis of the advantages of the division of labour capable of generating economies of scale, both in a static and dynamic sense, was that contained in the famous First Book of Wealth of N… See more

External economies of scale tend to be more prevalent than internal economies of scale. Through the external economies of scale, the entry of new firms benefits all existing competitors as it creates greater competitio… See more

Firms are able to lower their average costs by buying their inputs required for the production process in bulk or from special wholesalers.
Firms might be able to lower their average costs by im… See more