Scale Economies
/ˈskeɪl ɪˌkɑːnəmiːz/
Definitions
- (n.) Cost advantages that a firm obtains due to expansion, resulting in lower per-unit costs.
The company achieved scale economies by increasing production volume, reducing overall costs.
Related terms
Commentary
In legal and economic contexts, scale economies relate to market structure analysis, particularly in antitrust and competition law, where understanding cost advantages can impact assessments of market power.
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