A phenomenon which encourages the production of larger volumes of a commodity to reduce its unit cost by distributing fixed costs over a greater quantity.
The lowering of costs with added output due to allocation of fixed costs over more units.
the saving in cost of production that is due to mass production
Principle that production of larger volumes of something tends to reduce unit cost because fixed costs are distributed across a greater quantity of product. Savings in per-unit cost achieved by mass production.
The decrease in unit manufacturing cost that is due to mass production
When it costs less per item to produce large volumes of something than to produce smaller quantities.
A lower cost per unit produced, achieved through large-scale production. The lower cost can result from better tools of production, greater discounts on purchased supplies, production of byproducts, and/or equipment or labor used at production levels closer to capacity. A large cattle feeding operation may be able to benefit from economies such as lower unit feed costs, increased mechanization, and lower unit veterinary costs.
Reductions in minimum average costs and improvements in biological viability that comes about through increases in size of operation.
A phenomenon whereby larger volumes of production reduce unit cost by distributing fixed costs over a larger quantity.