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

The Gulf carriers' approach combines some of the convenience point-to-point gives passengers with the economies of scale for airlines associated with the hub-and-spoke system.

From BBC

“You get no economy of scale with the traditional ferry industry because it’s very much a one-off,” Hasselskog said.

From The Wall Street Journal

Tech companies, Berezin says, have historically generated profits from three sources: economies of scale, network effects, and proprietary technologies.

From Barron's

Tech companies, Berezin says, have historically generated profits from three sources: economies of scale, network effects, and proprietary technologies.

From Barron's

With capitals often giving priority to contracts with national companies, Europe’s armed forces suffer from overlaps and incompatibilities, high prices due to low economies of scale, and a fragmented industry.

From The Wall Street Journal