Investopedia.com: 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
marchudson.net 