Dictionary of Procurement Terms

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Search Results: 1-1 of 1 result for “Economies of Scale”

  • Economies of Scale

    1. Reductions in minimum average costs as a result of increases in the size (scale) of plant and equipment. 2. A reduction in selling price as a result of an increase in the quantity ordered. 3. The aggregation of quantities to obtain certain economic advantages. (Business, 2002)

    See Also: Quantity Discount, Volume Discounts, Volume Leveraging