The
Definition Of

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 Term

More from this Section

  • Other-than-collision loss
    Other-than-collision loss is a part of the coverage available under Part D: Coverage for Damage to Your Auto in the personal auto policy. All physical damage losses to an insured vehicle are covered except
  • Sources and uses of funds method
    Sources and uses of funds method refers to approach developed for estimating a bank’s liquidity requirements that examines the expected
  • Undervaluation
    When a firm’s securities sell for less than their intrinsic, or potential, or long-run value for one or more reasons.
  • Variable life insurance
    Variable life insurance is life insurance policy in which the death benefit and cash surrender values vary according to the investment
  • Repurchase agreement (RP)
    Repurchase agreement (RP) is a money market instrument that involves the temporary sale of high-quality assets (usually
  • Adjustable-rate mortgage (ARM)
    Adjustable-rate mortgage (ARM) is a mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent
  • Operating Synergy
    Operating synergy, which usually is referred to as economies of scale (decreases in per-unit costs), is the cost reduction produces by corporate combination.