If you diseconomies of scope investopedia forex questions or comments please contact Morningstar. Economies of scale are defined as the cost advantages that an organization can achieve by expanding its production in the long run.
In other words, these are the advantages of large scale production of the organization. The cost advantages are achieved in the form of lower average costs per unit. It is a long term concept. Economies of scale are achieved when there is an increase in the sales of an organization. As a result, the savings of the organization increases, which further enables the organization to obtain raw materials in bulk. This helps the organization to enjoy discounts. These benefits are called as economies of scale.