How do economies of scale benefit an organization?© BrainMass Inc. brainmass.com June 4, 2020, 4:44 am ad1c9bdddf
Economies of Scale (Definition)
The primary benefit of economies of scale are that companies are able to grow profits and increase production while decreasing costs. In order for a company to gain a competitive edge two factors are critical which are product differentiation and cost leadership. Economies of scale is one driving aspect of successful cost leadership. Cost leadership occurs when a company is able to produce a product ...
This solution of 250 words introduces the basics of economies of scale, touching on internal and external economies of scale.