Economies of Scale Explained Think Econ

Economies of Scale Explained Think Econ economies of scale Economies of Scale Examples Supermarkets are the most common example of economies of scale Since they buy goods in bulk, they avail discounts conflict of interest 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

conflict of interest 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

sanofi Definition ; Economies of scale is a concept of Economics that suggests that when a company reaches a point where the production cost is decreasing due to bulk Economies of scale happen when a company can produce more products for a lower average cost per product in the long run As a company's output