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

Poland’s huge order will increase that economy of scale.

From New York Times • Mar. 5, 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

And drone delivery of a single package defies any economy of scale.

From Seattle Times • Sep. 15, 2022