In economics, the term economies of scale refers to a situation where the cost of producing one unit of a good or service decreases as the volume of production increases. The converse situation in which the cost of producing a good or service increases as the volume of production increases is known diseconomies of scale[?]. Economies of scale tend to occur in industries with high capital costs in which those costs can be distributed across a large number of units of production.
The exploitation of economies of scale helps explain why companies grow large in some industries, why marketplaces with many participants are sometimes more efficient, and how a natural monopoly can often occur. It is also a justification for free trade policies, under the idea that a large unified market presents more opportunities for economies of scale.
Network externalities resemble economies of scale, but they are not considered such because they are effects of the number of users of a good or service, not of efficiency within a business. On the other hand, Economies of scale external to the firm are not considered examples of Network externalities despite the fact that they arise from similar non-market interactions with external resources. There is something arbitrary about this, to the extent that either approach may be used if corresponding definitions are used. The most important thing is be consistent about it, which means respecting the established convention.
see also : microeconomics, production, costs, and pricing, economies of scope, economies of agglomeration
| List of Marketing Topics | List of Management Topics |
| List of Economics Topics | List of Accounting Topics |
| List of Finance Topics | List of Economists |
Common misspelling and questions (FAQ)
conomies-of-scale eonomies-of-scale ecnomies-of-scale ecoomies-of-scale econmies-of-scale econoies-of-scale economes-of-scale economis-of-scale economie-of-scale economiesof-scale economies-f-scale economies-o-scale economies-ofscale economies-of-cale economies-of-sale economies-of-scle economies-of-scae economies-of-scal ceonomies-of-scale eocnomies-of-scale ecnoomies-of-scale ecoonmies-of-scale econmoies-of-scale econoimes-of-scale economeis-of-scale economise-of-scale economie-sof-scale economieso-f-scale economies-fo-scale economies-o-fscale economies-ofs-cale economies-of-csale economies-of-sacle economies-of-sclae economies-of-scael economies-of-scal eeconomies-of-scale ecconomies-of-scale ecoonomies-of-scale econnomies-of-scale econoomies-of-scale econommies-of-scale economiies-of-scale economiees-of-scale economiess-of-scale economies--of-scale economies-oof-scale economies-off-scale economies-of--scale economies-of-sscale economies-of-sccale economies-of-scaale economies-of-scalle economies-of-scalee 3conomies-of-scale wconomies-of-scale sconomies-of-scale 4conomies-of-scale dconomies-of-scale 4conomies-of-scale rconomies-of-scale dconomies-of-scale edonomies-of-scale exonomies-of-scale efonomies-of-scale efonomies-of-scale evonomies-of-scale ec9nomies-of-scale ecinomies-of-scale ecknomies-of-scale ec0nomies-of-scale eclnomies-of-scale ec0nomies-of-scale ecpnomies-of-scale eclnomies-of-scale ecohomies-of-scale ecobomies-of-scale ecojomies-of-scale ecojomies-of-scale ecomomies-of-scale econ9mies-of-scale econimies-of-scale econkmies-of-scale econ0mies-of-scale econlmies-of-scale econ0mies-of-scale econpmies-of-scale econlmies-of-scale econojies-of-scale econonies-of-scale econokies-of-scale econokies-of-scale econo,ies-of-scale econom8es-of-scale economues-of-scale economjes-of-scale econom9es-of-scale economkes-of-scale econom9es-of-scale economoes-of-scale economkes-of-scale economi3s-of-scale economiws-of-scale economiss-of-scale economi4s-of-scale economids-of-scale economi4s-of-scale economirs-of-scale economids-of-scale economiew-of-scale economiea-of-scale economiez-of-scale economiee-of-scale economiex-of-scale economiee-of-scale economied-of-scale economiex-of-scale economies0of-scale economiespof-scale economies[of-scale economies-9f-scale economies-if-scale economies-kf-scale economies-0f-scale economies-lf-scale economies-0f-scale economies-pf-scale economies-lf-scale economies-or-scale economies-od-scale economies-oc-scale economies-ot-scale economies-ov-scale economies-ot-scale economies-og-scale economies-ov-scale economies-of0scale economies-ofpscale economies-of[scale economies-of-wcale economies-of-acale economies-of-zcale economies-of-ecale economies-of-xcale economies-of-ecale economies-of-dcale economies-of-xcale economies-of-sdale economies-of-sxale economies-of-sfale economies-of-sfale economies-of-svale economies-of-scqle economies-of-scwle economies-of-sczle economies-of-scwle economies-of-scsle economies-of-sczle economies-of-scaoe economies-of-scake economies-of-sca,e economies-of-scape economies-of-sca.e economies-of-scape economies-of-sca;e economies-of-sca.e economies-of-scal3 economies-of-scalw economies-of-scals economies-of-scal4 economies-of-scald economies-of-scal4 economies-of-scalr economies-of-scald economyes-of-scale economeis-of-scale economies-of-scalesby the bridal adornment being shorn. But it made no difference in wood, she keeping equal step with me in wifely way. When we had come through the trees near enough to see the roof of the with eyes full of love, said: "Here I must leave you!" "What?" I was all aghast, and I felt that my chagrin was expressed is our wedding-night; and surely your place is with me!" The wail in be none--than to share my husband's home. Oh, my dear, my dear, if indeed I may not--not yet! I am not free! If you but knew how much others as well as to myself may be yet to come--you would understand. naturally it thrilled me through and through--"Rupert, my husband, mutual love, I dare not have done what I have done this night. But, your honour, even as your honour is mine. My honour is given to trusting me. Be patient, my beloved, be patient! Oh, be patient for is freed I shall come to you, my husband; and we shall never part very soul; and to keep away from your dear side is more bitter for me women are, as some day you shall clearly understand. I am at the obligations put upon me by others, and for others, and to which I am others--and which I must not forgo. These forbid me to do as I wish. .