I’ve read that term mainly while doing cost estimation for wind/soar projects. Confused what does that exactly mean.
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Basically what this means is that companies can achieve a lower average cost (cost per unit of product) by buying many things at one time. For example, if a company buys 100000 metal screws, they are able to get each screw at a lower price than just buying 1 screw individually.
There are many types of economies of scale, but the general idea is similar to the one I wrote above. Can refer to this for a more detailed explanation: [https://www.investopedia.com/terms/e/economiesofscale.asp](https://www.investopedia.com/terms/e/economiesofscale.asp)
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