What is economies of scale?

economy of scale  Economies of Scale These occur when mass producing a good results in lower average cost Average costs fall per unit INTERNAL ECONOMIES: This happens when better use is made in factors of production within the firm and by increasing output the factors in the internal economies

Source: Internal economies of scale refer to the cost advantages a firm can achieve as a result of its own growth and expansion These cost The more the company can produce, ship, and sell, the more the costs of materials and labor decrease per unit So as economies of scale drive down the costs of

Economies of Scale refer to the cost advantage experienced by a firm when it increases its level Internal Economies of Scale These are those which arise from the expansion of the plant size of the firm They are specific to the individual firm These are