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The beginning of this economic concept, #economies of the scale, can be dated back to Adam Smith who was a Scottish pioneer of political economy and an important key figure during the Scottish Enlightenment Era and was based on the idea of obtaining greater production return profits through the use of the division of labor.
#Economiesofthescale are referred to as cost advantages that a company gets by altering its levels of production processes.
The company gets its advantages through economies of scale due to the inverse relationship that exists between the per unit fixed cost and the quantity produced.
The lesser the quantity of produce, greater will be the per unit fixed cost of the product.
The implementation of the economies of scale can take place at any of the firm stages of the production processes including all the levels economic production of the commodity except the one that comprises the involvement of the buyer.
