Economies of Scale and Size

Economies of Scale economy of scale The left-hand portion of the long-run average cost curve, where it is downward-sloping from output levels Q1 to Q2 to Q3, illustrates the case of economies of ways of the qilin Economies of scale provide larger companies with a competitive advantage over smaller ones, because the larger the business, the lower its per-unit costs

office space Internal Economies of Scale Internal economies of scale are unique to each organization and are associated with large businesses For instance,