External Economies of Scale

economy of scale  Economies of scale refer to the notion that average cost falls as the firm expands Conversely, diseconomies of scale occur when expansion incurs increasing For example, if the fixed cost to operate in the automotive industry is $100,000, then producing 100 cars instead of 5 cars represents a lower fixed cost per

Economy of scope and economy of scale are two different concepts used to help cut a company's costs Economies of scope focuses on the Studies of selected mineral industries, 239

Short-run average cost curves assume the existence of fixed costs, and only variable costs were allowed to change In sum, economies of scale refers to a What Are Economies Of Scale? The theory of economies of scale was proposed by Adam Smith The theory posits that if economies of scale can be obtained, a