Economies of Scale Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because of the inverse relationship between the quantity produced and per-unit fixed costs; i.e. the greater the quantity of a good produced, the lower the per-unit fixed costbecause these costs are spread out over a larger number of goods.

Yes, and the scale gets even better if you can dump (social and environmental) costs on the public (negative externalities etc)

See also Minimum Efficient Scale

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