ECONOMY OF SCALE Definition & Meaning

economy of scale

[ ih-kon-uh-mee uhv skeyl ]

Phonetic (Standard)IPA

noun

Usually economies of scale. a savings in cost achieved by virtue of the large quantity of units produced, materials purchased or transported, etc.:
Expanding our business into the international market would bring a lot more competition, but also much greater economies of scale for production.

economy of scale

noun

economics a fall in average costs resulting from an increase in the scale of production

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�y��vlog History and Origins

Origin of economy of scale¹

First recorded in 1940–45

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Example Sentences

Examples have not been reviewed.

He points out that Jaguar had been trying to succeed in a high-volume market, where the bigger players can keep their costs down through economies of scale.

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This is partly because they still represent a relatively small proportion of cars being built, so economies of scale – when the cost comes down the more you build – have not yet properly kicked in.

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As a result, the aviation industry is demanding action to increase production, and bring prices down through economies of scale.

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The result was eight “pools” of funds, which are designed to improve economies of scale and improve funds’ ability to invest.

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“It’s based on economy of scale. The larger ones have more resources for treatment. Smaller systems can be at a bit more of an economic disadvantage.”

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