Economies of Scale: Definition and Types

economies of scale  First cousins to economies of scale are economies of scope, factors that make it cheaper to produce a range of products together than to produce In short, you get more for your money when your organization achieves economies of scale So, while you may incur initial extra costs by investing in new

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 PDF Economies of scale are introduced in Cost Analysis

External economies of scale External economies of scale result from external factors outside the company's control, such as the industry, Economies of scale serve as a potent tool for firms to gain cost advantages and expand their market presence The benefits include reduced per-