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1987•The New Palgrave Dictionary of EconomicsRequires access

Economies and Diseconomies of Scale

Joaquim Silvestre

Open publisher page 11 citations

Abstract

We consider the unit costs of producing a (single or composite) output under a given technology (no technical change). We say that there are economies (or diseconomies ) of scale in some interval of output if the average cost is decreasing (or increasing) there. This definition focuses on economies and diseconomies of a technical character. It is sometimes extended to cover business activities other than production (such as marketing, financing, training: see Scherer 1980). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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What this paper is about

We consider the unit costs of producing a (single or composite) output under a given technology (no technical change). We say that there are economies (or diseconomies ) of scale in some interval of output if the average cost is decreasing (or increasing) there. This definition focuses on economies and diseconomies of a technical character. It is sometimes extended to cover business activities other than production (such as marketing, financing, training: see Scherer 1980). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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OpenAlex reports 11 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

We consider the unit costs of producing a (single or composite) output under a given technology (no technical change). We say that there are economies (or diseconomies ) of scale in some interval of output if the average cost is decreasing (or increasing) there. This definition focuses on economies and diseconomies of a technical character. It is sometimes extended to cover business activities other than production (such as marketing, financing, training: see Scherer 1980). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Key concepts: Diseconomies of scale, Economies of scale, Production (economics), Scale (ratio), Character (mathematics), Economics, Unit (ring theory), Industrial organization

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