economy of scale

[ ih-kon-uh-mee uhv skeyl ]

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

noun

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

Word History and Origins

Origin of economy of scale¹

First recorded in 1940–45

Example Sentences

As a result, the aviation industry is demanding action to increase production, and bring prices down through economies of scale.

From BBC

The result was eight “pools” of funds, which are designed to improve economies of scale and improve funds’ ability to invest.

From BBC

“It’s based on economy of scale. The larger ones have more resources for treatment. Smaller systems can be at a bit more of an economic disadvantage.”

From Los Angeles Times

For their part, the cash management companies are able to build large vaults that can accommodate the money of multiple financial institutions and other commercial customers, achieving economies of scale.

From Los Angeles Times

Having so many companies creating their own designs and logistics can be expensive, causing them to miss out on economies of scale that could make reuse more affordable and easily adoptable.

From Salon