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

Smaller hospitals also cannot take advantage of economies of scale the way bigger institutions can, nor can they bring the same muscle to negotiations for higher rates with private insurance companies.

From Los Angeles Times

The alliance said it used economies of scale to bring down prices and make vaccines available to about 50 poorer countries.

From Barron's

In America, mechanization, economies of scale and mass marketing gutted local competitors by providing lower prices and higher-quality products.

From The Wall Street Journal

Combining home search and mortgage seems like a natural way to leverage economies of scale to reduce pricing.

From Barron's

One reason is the need to achieve economies of scale to improve efficiency.

From MarketWatch