economy of scale
1
the cost advantages that enterprises obtain due to size, output, or scale of operation
- Large manufacturers benefit from economy of scale by producing goods at lower costs per unit.
- The expansion of the company's production facilities allowed it to achieve economy of scale.
- Economies of scale in transportation reduced shipping costs for bulk orders.
- By consolidating its supply chain, the company aimed to capitalize on economy of scale.
- The restaurant chain leverages economy of scale to negotiate better prices with suppliers.