Economies of scale

economies of scale  Purchasing Economies of scale in purchasing come from consolidating raw material sources and paring down a company's supplier base By purchasing on a global Amazon's advanced distribution network leverages economies of scale through a combination of bulk purchasing and optimized shipping routes By

Economies of scale Figure 1 The Long-run average cost curve of a firm illustrates how the cost per unit changes with output Economies of scale means that Economies of scale Figure 1 The Long-run average cost curve of a firm illustrates how the cost per unit changes with output Economies of scale means that

Economies of scale allow companies to save a lot on cost per input A company could decide to invest the money from the savings of scaling up the business to Economies of Scale