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In economics, economies of scale are situations where the average unit cost of producing a good or service decreases as the volume of production increases. The converse situation in which the cost of producing a good or service increases as the volume of production increases is known as diseconomies of scale. Economies of scale tend to occur in industries with high capital costs in which those costs can be distributed across a large number of units of production.

The exploitation of economies of scale helps explain why companies grow large in some industries, why marketplaces with many participants are sometimes more efficient, and how a natural monopoly can often occur. It is also a justification for free trade policies, under the idea that a large unified market presents more opportunities for economies of scale.

Network externalities resemble economies of scale, but they are not considered such because they are effects of the number of users of a good or service, not of efficiency within a business. On the other hand, Economies of scale external to the firm are not considered examples of network externalities despite the fact that they arise from similar non-market interactions with external resources. There is something arbitrary about this, to the extent that either approach may be used if corresponding definitions are used. The most important thing is be consistent about it, which means respecting the established convention.

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List of Finance TopicsWhat follows is a list of over 250 Wikipedia articles on finance topics. This list is an attempt to categorize all financial topics. An alphabetical listing of finance topics can be found at List of finance topics (alphabetical). Fundamental financial con List of EconomistsEconomists are scholars conducting research in the field of economics. Alphabetical list Below is a list of well-known economists. For quick navigation, select one of these letters: A George Akerlof Maurice Allais Roy G D Allen Elisabeth Altmann-Gottheine

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Topics: Economies Of Scale, Economies Of Scope, Economies Of...

Economies of scaleIn economics, economies of scale are situations where the average unit cost of producing a good or service decreases as the volume of production increases. The converse situation in which the cost of producing a good or service increases as the volume of

Economies of scopeEconomies of scope are conceptually similar to Economies of scale. Whereas economies of scale apply to efficiencies associated with increasing or decreasing the scale of production, economies of scope refer to efficiencies associated with increasing or de

Economies of agglomerationThe term Economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other. It is related to the idea of economies of scale and network effects, in that the more related firms that are clustered

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List of Marketing Topics	List of Management Topics
List of Economics Topics	List of Accounting TopicsThis is a list of topics which are relevant to Accountancy. Articles exist for some of these topics, others need to be written. Accounting information system Accounting reform Accounting scandals Accounting software Accounts payable Accounts receivable Ac
List of Finance TopicsWhat follows is a list of over 250 Wikipedia articles on finance topics. This list is an attempt to categorize all financial topics. An alphabetical listing of finance topics can be found at List of finance topics (alphabetical). Fundamental financial con	List of EconomistsEconomists are scholars conducting research in the field of economics. Alphabetical list Below is a list of well-known economists. For quick navigation, select one of these letters: A George Akerlof Maurice Allais Roy G D Allen Elisabeth Altmann-Gottheine