scale economy — cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale
Part of speech: NOUN
Definition: cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale
Pronunciation (IPA): /skeɪl ɪˈkɑːnəmi/
Example Sentences
- Netflix enjoys scale economy by spreading content costs across millions of subscribers.
- The pizza chain's scale economy allows them to buy cheese cheaper than your mom's grocery budget.
- Amazon's scale economy is so powerful that they can deliver packages faster than I can find my keys.
scale economy
NOUN[/skeɪl ɪˈkɑːnəmi/]
cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale
cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale
As giant ships sail the seas, they tell the tale of scale economy's ease!
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🎤Pronunciation
🌳Etymology
Origin
Scale derives from Latin scala, meaning 'ladder' or 'staircase,' which metaphorically extended to denote 'size' or 'magnitude.' Economy originates from Greek oikonomia, combining oikos (household) and nomos (law or management), originally referring to household management before developing into the modern economic science term.
Breakdown
scale (Latin scala: ladder → size/magnitude) + economy (Greek oik- (house) + -nomia (management/law)). The compound expresses the economic principle of cost reduction through increased production magnitude.
🎵Rhyme
🔗Collocations
📝Examples
“Netflix enjoys scale economy by spreading content costs across millions of subscribers.”
“The pizza chain's scale economy allows them to buy cheese cheaper than your mom's grocery budget.”
“Amazon's scale economy is so powerful that they can deliver packages faster than I can find my keys.”
“Small startups struggle to compete without scale economy advantages.”
📚Related Words
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