economies of scale

singular economy of scale

1. pluralplural normallyeconomicsThe characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit.

   To exploit travel economies of scale, RAIL buys a four-in-eight-day Rail Rover. This is now known as the 'Spirit of Scotland Travelpass', although older users may remember it as the 'Freedom of Scotland' - arguably a better name.

   2025 March 5, “Ayr miles with a 'Spirit of Scotland'”, in RAIL, number 1030, page 43

   2 more examples

   When plant size increased from 400 heavy young hens per hour to about 1,500 per hour average costs per pound declined from 6.6 to 5.4 cents per pound. While these costs suggested the existence of economies of scale in processing, they did not provide a standardized measure of the exact nature and extent of potential cost savings.

   1963, George Burnet Rogers, Costs and Economies of Scale in Turkey Processing Plants, Washington, DC: U.S. Department of Agriculture, page i

   In the 1930s, Brandeis argued that large companies would inevitably exploit their workers, convert their profits into political influence, and corrode both the market and the machinations of government. But the Reagan administration and subsequent lawmakers have allowed vertical and horizontal integration on the theory that economies of scale often benefit both employees and consumers.

   2016 September 11, Derek Thompson, “America's Monopoly Problem”, in The Atlantic, →ISSN

   Antonyms: diseconomies of scale