Economies of scale definition

Economies of scale means mass purchasing of goods or services, which results in lower average costs.

Economies of scale means that as a company produces larger numbers of a particular product, the cost for each unit of the product goes down. True False

Economies of scale means the availability of a base of wider scale to bear and distribute such costs and charges and, hence, give the Fund a preferential negotiation position with different service providers of the Fund.

Examples of Economies of scale in a sentence

• Economies of scale may exist from the inherent cost savings that arise from the presence of functional integration or centralization of management.

• In 2001, the GMIAA entered into an interest rate swap which convert variable bankers acceptance rates into a fixed rate of 6.46%.

• Economies of scale arise from a production process in which the average (or per unit) cost of production decreases as the firm’s output increases.

• A reduction in the number of stations where service coverage might create unnecessary overlap.2. An increase in the staffing of stations where currently staffing is limited.3. An increase in staffing that reduces response times can be achieved.4. A reduction in the number of senior administrative staff can be achieved.5. Economies of scale for costly services can be attained.

• Economies of scale exist when an increase in production brings a fall in average unit cost.

More Definitions of Economies of scale

Economies of scale means a broader base in terms of size for the loading and distribution of those costs and expenses, thus giving the Fund a differential bargaining position with the fund’s various service providers.

Economies of scale means that as a company produces more of a product the total cost of production goes up.

Economies of scale means that as a company produces more of a product the cost of each unit produced goes down.

Economies of scale means that:

Economies of scale means the greater level of production, the cheaper the cost per unit. And while large-scale production can mean production at a lower cost, it often undermines local production in developing countries, and increases dependence on export crops.

Economies of scale means exist when the average total cost (AC) of the firm decreases with the volume of production. One common source of economies of scale in telecommunications industry is the significant fixed costs that are incurred regardless of the output units. When output expands, average fixed costs will decline and may result in economies of scale.

Economies of scale means that: A. as a company produces larger numbers of a particular product, the cost of each unit of the product goes down. B. the more producers there are in an economy the greater the need for intermediaries. C. larger countries enjoy more economic growth than smaller countries. D. as a company produces larger numbers of a particular product, the total cost of producing these products goes down. E. All of the above are true.