Definition

Scale Economies

Scale Economies is the reduction in per-unit costs achievable by spreading fixed costs over a higher level of production.

Share it:  Cite

More from this Section

  • Yield to maturity
    Yield to maturity refers to the rate of interest (discount) that equates future cash flows ...
  • Credit analysis
    Credit analysis, by which one calculates the creditworthiness of a business or organization, ...
  • Cash Reserve Ratio (CRR)
    Cash reserve ratio denotes the reserve which every banking company should maintain a specified ...
  • Fixed investment
    Fixed investment is the spending by firms on equipment (computers, airplanes) and structures ...
  • Adjusted exercise price
    Adjusted exercise price is a term which is used in options on Ginnie Mae (Government National ...