Economies Of Scale - Definition

Economies of scale economies of scale Economies of scale refer to these reduced costs per unit arising due to an increase in the total output Diseconomies of scale occur when the output slot pg soft The two concepts economies of scale and economies of size describe what happens to production or costs when the size of the firm changes

doofree88 Economies of Scale occur when the production costs on a per-unit basis decline as the output increases, resulting in cost savings and higher profit margins