economy of scale

[ ih-kon-uh-mee uhv skeyl ]

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.

economy of scale

noun

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

Word History and Origins

Origin of economy of scale¹

First recorded in 1940–45