The competitive difference between the larger vs smaller scale companies. It states that the larger the company scale to produce an item the lesser will be its price as compared to the increased cost of same item produced in small company. It applies to numerous companies or organizations. The economies of scale occur when the average cost of product start decreasing with the number of product increases.
Diagrams
Originated from/Coined by
Adam Smith
Further Reading/ References
https://www.investopedia.com/terms/e/economiesofscale.asp