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economy of scale

American  
[ih-kon-uh-mee uhv skeyl] / ɪˈkɒn ə mi əv ˈskeɪl /

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 British  

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of economy of scale

First recorded in 1940–45

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

With capitals often giving priority to contracts with national companies, Europe’s armed forces suffer from overlaps and incompatibilities, high prices due to low economies of scale, and a fragmented industry.

From The Wall Street Journal

The acquisition aims to expand Sumitomo’s U.S. housing business, allowing it to pursue economies of scale as a top homebuilder.

From Barron's

Fuyao denies any wrongdoing and attributes its success to the same production prowess and economies of scale that have made China the world’s leading manufacturer.

From The Wall Street Journal

But the dynamics of streaming series, with shorter episode orders, doesn’t create the same economies of scale and consistent occupancy rates that network shows once did, Klowden said.

From Los Angeles Times

Greater hiring flexibility increases the prospect that Indian manufacturing will achieve economies of scale to become an export juggernaut and better compete against rivals like China.

From The Wall Street Journal