What Are Economies Of Scale?

economies of scale  Internal economies of scale come about as a result of the growth of the firm itself, and include: 1 Financial economies of scale  In this video I explain the idea of what happens to output and costs in the long-run I cover two

Economies of scale have been at the heart of developments in economic theory in the past two decades Breakthroughs in the field of industrial External economies of scale External economies of scale result from external factors outside the company's control, such as the industry,

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 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