economy of scale

American  

[ih-kon-uh-mee uhv skeyl] / ɪˈkɒn ə mi əv ˈskeɪl /

noun

1. Usually economies of scale a savings in cost achieved by virtue of the large quantity of units produced, materials purchased or transported, etc..

   Expanding our business into the international market would bring a lot more competition, but also much greater economies of scale for production.

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economy of scale British  

noun

1. economics a fall in average costs resulting from an increase in the scale of production

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Etymology

Origin of economy of scale

First recorded in 1940–45

Example Sentences

In private equity, a roll-up has historically meant buying companies, consolidating them to achieve an economy of scale and then flipping the larger entity for profit.

From The Wall Street Journal • Jun. 9, 2026

The advantage of the superhot peppers is economy of scale.

From Scientific American • Oct. 26, 2023

"There is no other entertainment agency with such a fan platform with enough users for economy of scale," said Lee Hye-in, analyst at Yuanta Securities.

From Reuters • Dec. 22, 2022

“There’s an economy of scale and an efficiency,” he said.

From New York Times • Oct. 8, 2019

“It’s very difficult on an economy of scale with the capital needs and all the environmental regulations and everything else today to survive milking 40, 50, or 60 or even 100 cows,” he said.

From Seattle Times • Oct. 1, 2019