economies-of-scale
/ɪˈkɒn.ə.miz əv skeɪl/ IELTSAcademic
noun
A situation where the cost of making one item falls as a company makes more items. Bigger production often makes each unit cheaper.
- The factory cut prices through economies of scale.
- Large farms often benefit from economies of scale.
- Small shops may not get the same economies of scale.
Adinary Nuance
Economies of scale is not just 'cheapness' or 'efficiency'. It means lower unit cost that happens because production is larger. Use it when size itself helps reduce costs, not when something is merely well managed. Writers often choose it in business, economics, and academic writing.
In other languages
- Vietnamese
- lợi thế quy mô
- Spanish
- economías de escala
- Chinese
- 规模经济
- Japanese
- 規模の経済
- Korean
- 규모의 경제
Etymology
This business term comes from economics and became common in the 20th century. It uses the idea of 'scale' to mean size of production.
Common phrases
benefit from economies of scaleachieve economies of scaletake advantage of economies of scalelack economies of scale
Synonyms
Related words
Frequently asked questions
- Is economies of scale singular or plural?
- It is usually used in the plural form, even when it refers to one idea.
- What is the difference between economies of scale and efficiency?
- Efficiency means using resources well. Economies of scale mean lower costs because production is larger.
- Is economies of scale common in business English?
- Yes. It is very common in business, economics, and academic writing.
- Can small businesses have economies of scale?
- Sometimes, but large businesses usually get stronger economies of scale.