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1.7.3 Economies of scale
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What are economies of scale?

What are economies of scale?

Diagram showing how higher output leads to purchasing and technical economies, which reduce average unit cost

Economies of scale are the cost advantages a business gains as it grows. They occur when average unit cost falls as output increases.

1.7.3 Economies of scale Lesson

  1. GCSE
  2. /Business
  3. /1.7.3 Economies of scale

Step-by-step lessons on AQA GCSE Business 1.7.3 Economies of scale. Each one builds up to exam-style questions. Start by mastering business terminology and the functional areas (marketing, finance, operations, HR) before moving on to the extended, evaluation-heavy questions that carry the most marks.

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