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Economies of scale

Index Economies of scale

In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation (typically measured by amount of output produced), with cost per unit of output decreasing with increasing scale. [1]

36 relations: Adam Smith, Beam (structure), Cooperative, Cost curve, Diseconomies of scale, Drag (physics), Economic and Philosophic Manuscripts of 1844, Economies of density, Economies of scope, Failure demand, Fixed cost, Free trade, Homogeneous function, Interest, John Seddon, Karl Marx, Liechtenstein, Long tail, Marketing, Mass production, Media market, Microeconomics, Natural monopoly, Network effect, Perfect competition, Pulp and paper industry, Purchasing, Quarterly Journal of Economics, Returns to scale, Reverse auction, Socially optimal firm size, Square–cube law, The New Palgrave Dictionary of Economics, Toyota Production System, Variable cost, Working capital.

Adam Smith

Adam Smith (16 June 1723 NS (5 June 1723 OS) – 17 July 1790) was a Scottish economist, philosopher and author as well as a moral philosopher, a pioneer of political economy and a key figure during the Scottish Enlightenment era.

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Beam (structure)

A beam is a structural element that primarily resists loads applied laterally to the beam's axis.

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A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise".

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Cost curve

In economics, a cost curve is a graph of the costs of production as a function of total quantity produced.

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Diseconomies of scale

In microeconomics, diseconomies of scale are the cost disadvantages that firms and governments accrue due to increase in firm size or output, resulting in production of goods and services at increased per-unit costs.

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Drag (physics)

In fluid dynamics, drag (sometimes called air resistance, a type of friction, or fluid resistance, another type of friction or fluid friction) is a force acting opposite to the relative motion of any object moving with respect to a surrounding fluid.

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Economic and Philosophic Manuscripts of 1844

Economic and Philosophic Manuscripts of 1844 (also referred to as The Paris Manuscripts) are a series of notes written between April and August 1844 by Karl Marx.

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Economies of density

In microeconomics, economies of density express cost savings resulting from spatial proximity of suppliers or providers.

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Economies of scope

Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is "economies of scale").

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Failure demand

Failure demand is a systems concept used in service organisations first discovered and articulated by Professor John Seddon as 'demand caused by a failure to do something or do something right for the customer'.

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Fixed cost

In economics, fixed costs, indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business.

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Free trade

Free trade is a free market policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries.

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Homogeneous function

In mathematics, a homogeneous function is one with multiplicative scaling behaviour: if all its arguments are multiplied by a factor, then its value is multiplied by some power of this factor.

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Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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John Seddon

John Seddon is a British occupational psychologist and author, specialising in change in the service industry.

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Karl Marx

Karl MarxThe name "Karl Heinrich Marx", used in various lexicons, is based on an error.

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Liechtenstein, officially the Principality of Liechtenstein (Fürstentum Liechtenstein), is a doubly landlocked German-speaking microstate in Central Europe.

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Long tail

In statistics and business, a long tail of some distributions of numbers is the portion of the distribution having a large number of occurrences far from the "head" or central part of the distribution.

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Marketing is the study and management of exchange relationships.

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Mass production

Mass production, also known as flow production or continuous production, is the production of large amounts of standardized products, including and especially on assembly lines.

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Media market

A media market, broadcast market, media region, designated market area (DMA), television market area, or simply market is a region where the population can receive the same (or similar) television and radio station offerings, and may also include other types of media including newspapers and Internet content.

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Microeconomics (from Greek prefix mikro- meaning "small") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

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Natural monopoly

A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors.

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Network effect

A network effect (also called network externality or demand-side economies of scale) is the positive effect described in economics and business that an additional user of a good or service has on the value of that product to others.

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Perfect competition

In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition.

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Pulp and paper industry

The pulp and paper industry comprises companies that use wood as raw material and produce pulp, paper, paperboard and other cellulose-based products.

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Purchasing refers to a business or organization attempting to acquire goods or services to accomplish its goals.

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Quarterly Journal of Economics

The Quarterly Journal of Economics is a peer-reviewed academic journal published by the Oxford University Press.

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Returns to scale

In economics, returns to scale and economies of scale are related but different terms that describe what happens as the scale of production increases in the long run, when all input levels including physical capital usage are variable (chosen by the firm).

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Reverse auction

A reverse auction is a type of auction in which the roles of buyer and seller are reversed.

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Socially optimal firm size

The socially optimal firm size is the size for a company in a given industry at a given time which results in the lowest production costs per unit of output.

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Square–cube law

The square–cube law (or cube–square law) is a mathematical principle, applied in a variety of scientific fields, which describes the relationship between the volume and the surface area as a shape's size increases or decreases.

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The New Palgrave Dictionary of Economics

The New Palgrave Dictionary of Economics (2008), 2nd ed., is an eight-volume reference work on economics, edited by Steven N. Durlauf and Lawrence E. Blume and published by Palgrave Macmillan.

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Toyota Production System

The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices.

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Variable cost

Variable costs are costs that change in proportion to the good or service that a business produces.

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Working capital

Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organisation or other entity, including governmental entities.

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Advantage of size, Advantages of size, Economics of scale, Economies of Scale, Economy of scale, Economy of size, Internal economies of scale, Scale economics, Scale economies, Scale economy, Scale effects.


[1] https://en.wikipedia.org/wiki/Economies_of_scale

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