Definition[]
Economies of scale refers to
“ | [r]eductions in unit cost of output resulting from the production of additional units stem from increased specialization of labor as volume of output increases; decreased unit costs of materials; better utilization of management; acquisition of more efficient equipment; and greater use of byproducts.[1] | ” |
References[]
- ↑ Defense Acquisition University, Glossary, at B-60 (13th ed. Nov. 2009) (full-text).