The phrase
"economy of scale" refers to the concept of producing more goods or services at a lower cost per unit. When businesses increase their production volume, they can benefit from economies of scale. This means that the average cost of producing each unit decreases, which can lead to higher profits or lower prices for consumers.
Full definition
In other words, it allows companies to take advantage
of economies of scale in clean up investments and pass them along to others that might not qualify on their own.
Additionally, larger REITs benefit
from economies of scale as corporate expenses can be spread over a larger asset base.
Typically, a geothermal project can not produce electricity economically at a scale less than 5 MW and there is a very large
economy of scale for projects above 30 MW in size.
This is achieved through
economies of scale by producing large amounts of water for individuals and operating much like an electric grid.
Hopefully this technology's price will follow a similar path as the DVD player's
through economy of scale as time passes.
By doing so, they
create economies of scale by keeping staff in their «home office» and minimize risk with a virtual office's low cost and commitment.
In a consortium, a small group of schools team up to meet common needs and capitalize
on economies of scale.
This is partly due to
economies of scale as it has taken off, but also because the price of electrical components and computing power has dropped over the years.
A: Well, usually you can
get economies of scale that will keep the fees down, because you've just got one big pot and not multiple little pots.
Both of these projects will be important in achieving the kinds of
economies of scale needed in solar power to drive down prices.
Should state virtual schools focus on areas where they can
provide economies of scale and support services that too costly at the district level?
Company - built facilities
offer economies of scale and can be customized with efficient designs that offer savings on power bills.
Consolidation has also created experienced property managers with
huge economies of scale, another factor making new build more economical.
Managed hosting firms utilize
economies of scale allowing those that use an outsourcing strategy to remain ahead of the curve and cutting edge.
Specifically, this lesson is for looking at the size of companies or firms and also concepts
like economies of scale.
Plus,
economies of scale mean innovative safety technology no longer need be the exclusive domain of luxury vehicles whose buyers can afford the added costs.
For example, chain restaurants can create distribution networks and systems that take advantage of supply
side economies of scale.
Furthermore, with a bit of ingenuity one could
find economies of scale that would ensure that a document - assembly system is viable.
«We expect that a downward trend in price premiums — with
growing economies of scale in organic production and increasing supermarket participation — will also help boost demand,» he says.
Typically, a company that achieves
economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
From a business perspective it made a lot of sense, allowing it to generate
massive economies of scale and, accordingly, higher profit margins.
Our developer ecosystem will just grow and there's more diverse games, then we'll continue to increase the payout as we continue to scale and get
more economies of scale.