Economy Of Scale

+**Economy Of Scale** is the cost advantage enjoyed by businesses as they increase their level of [Production](/wiki/production). This often means a lower average [Cost](/wiki/cost) per unit as output rises, spreading fixed costs over a larger volume and improving efficiency.

+## See also

+- [Diseconomy of Scale](/wiki/diseconomy_of_scale)

+- [Efficiency](/wiki/efficiency)

+- [Mass Production](/wiki/mass_production)