Economies of Scale: Definition and Types

economy of scale  This video looks at the concept os economies and diseconomies of scale! If you enjoyed the Quick Reference Reductions in the average cost of production, and hence in the unit costs, when output is increased If the average costs of production rise

In economies of scale, businesses can lower the average cost of production by making more of a product  Economies of scale are the cost advantages that an enterprise gets when it increases the size of its operations

Takeaway It may seem counterintuitive at first, but, thanks to economies of scale, producing more things on a larger scale actually reduces the Takeaway It may seem counterintuitive at first, but, thanks to economies of scale, producing more things on a larger scale actually reduces the