Definition of Economies of Scale (EOS)
- Posted on November 19, 2019
- Financial Terms
- By admin admin
Economies of Scale (EOS) is a term used to describe the increase in efficiency gained through an increase in the scale of operation. This is usually reflected either in increased productivity or through lower costs. For example, a car company may experience economies of scale if it increases in size and sets up a new factory in a new location, thereby reducing transport costs.
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