Dictionary of Procurement Terms

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

    1. Cost advantages achieved by businesses when demand increases and production becomes more efficient. This occurs when businesses lower unit costs by increasing the cumulated production volume, as set production costs are spread over a large number of units produced. 2. An increase in the quantity ordered that results in a reduction in selling price. See also: Quantity Discount, Volume Discount, Volume Leveraging.
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