Economies of Scale and Long-Run Costs- Micro Topic

Economies of Scale and Long-Run Costs- Micro Topic economies of scale Economies of scale allow companies to save a lot on cost per input A company could decide to invest the money from the savings of scaling up the business to post office External economies of scale External economies of scale result from external factors outside the company's control, such as the industry,

post office Technical: the efficiency gains when a firm increases the scale of its operation yields lower costs per unit For example, buying a bigger factory will cost you

gokickoff Economies of Scale occur when the production costs on a per-unit basis decline as the output increases, resulting in cost savings and higher profit margins  Economies of scale means a business has decreased cost-per-item while increasing their output Diseconomies of scale means that a company is facing increased