Economies of scale

Economies of scale in the European Union Law

Concept of Economies of scale provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Economies of scale occur when firms achieve per unit cost savings by producing more of a good or service (that is, when average costs decrease as output increases). Such effects arise when it is possible to spread fixed costs over a higher output. Examples of scale economies are the bigger lorry that transports more while still requir-ing only one driver or the larger plant that does not require more spare parts to be kept in stock than the smaller plant.