Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Investors can evaluate economies of scale to determine if a company can increase profitability and stay competitive as it ...

Economies of scale refer to economic efficiencies that result from carrying out a process on a larger scale. Scale effects are possible because in most production operations fixed and variable costs ...

This is the main idea behind "economies of scale," an economic concept that describes how larger companies become more efficient and protect their market position. For investors looking to hold for ...