economy of scale

• Kostenvorteil, den Unternehmen erzielen, wenn die Produktionsmenge steigt, weil die Fixkosten auf mehr Einheiten verteilt werden und dadurch die Stückkosten sinken.

A cost advantage that enterprises achieve when production becomes efficient, as costs can be spread over a larger number of goods, reducing the cost per unit.

1. Cost advantage from large-scale productionB2formal

   A reduction in the average cost per unit of output as the scale of production increases, due to factors like specialization, bulk purchasing, and more efficient use of resources.

   Skaleneffekt

   • The company achieved significant economies of scale by building a larger factory.
   • Bulk buying of raw materials is a classic example of an economy of scale.
   • As production doubled, the cost per unit fell, demonstrating an economy of scale.