economies of scale
Economies of scale
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The basic distinction is between technical economies of scale in production, and dynamic economies of scale in firm level activities such as management, R&D
For example, if the fixed cost to operate in the automotive industry is $100,000, then producing 100 cars instead of 5 cars represents a lower fixed cost per 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
gclub88888vip Economies and diseconomies of scale Economies of scale exist when long run average total 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