Economy Of Scale (Noun)
Meaning
The saving in cost of production that is due to mass production.
Classification
Nouns denoting acts or actions.
Examples
- A large factory can take advantage of economy of scale to produce goods at a lower cost per unit than a small factory.
- The company's decision to expand its operations was driven by the potential for economy of scale, which would allow it to reduce its costs and increase its competitiveness.
- The car manufacturer was able to achieve economy of scale by producing thousands of vehicles per day, which reduced its production costs and enabled it to offer lower prices to consumers.
- The retail chain's large size and high volume of sales allowed it to benefit from economy of scale, which it passed on to customers in the form of lower prices.
- By producing goods in massive quantities, the multinational corporation was able to take advantage of economy of scale and dominate the market with its low prices.