Economies Of Scale: Meaning, Types and Benefits

Chapter 31 Economies of scale economy of scale In most perfectly competitive models, it is assumed that production takes place with constant returns to scale This means pg soft™ 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

cabinet of curiosities Quick Reference Reductions in the average cost of production, and hence in the unit costs, when output is increased If the average costs of production rise