March 30, 2023

What is external economies of scale?

External economies of scale refer to the cost savings that can be achieved when firms in the same industry or within the same geographic area work together. These savings can come from sharing resources, such as labor, technology, materials, and infrastructure, as well as from benefiting from economies of specialization and learning. By reducing costs and increasing efficiency, external economies of scale help businesses become more competitive and profitable. They can also help create jobs and spur economic development in the local area.

March 16, 2023

In economics, what's the meaning of 'scale of production'?

Scale of production is a term used in economics to refer to the size and scope of a business or organization's production capabilities. It describes how much the business is able to produce in a given amount of time, such as per hour, day, week, month, or year. Scale of production is important to businesses as it helps them to determine the cost of production and the amount of resources needed to produce a certain amount of goods or services. It also helps businesses to identify potential markets and opportunities for growth. Ultimately, the scale of production will dictate a business's success.