Image Credit: https://www.economicshelp.org/wp-content/uploads/2014/05/economies-of-scale-growth-in-firm.pngOverviewEconomies of scale refer to reduced costs per unit that arise from increased total output of a product.—Will KentonRead MoreWhat Are Economies of Scale?Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.www.investopedia.com
