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.

---

economy of scale British  

noun

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

---

Etymology

Origin of economy of scale

First recorded in 1940–45

Example Sentences

Megacap companies still hold an advantage thanks to their operating leverage, or their ability to grow profits with economies of scale, according to Wagner.

From MarketWatch

American firms that relied on export markets to build economies of scale will shrink their operations to match their shrinking customer bases.

From The Wall Street Journal

The smaller operations lack the economies of scale available to larger corporations, making it difficult for them to survive on agriculture’s thin profit margins.

From Salon

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