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hi, exploiting the resources by using the lowest cost to generating the greater outputs. it usually link to learning curves, starting is high cost and low output, as it goes by low cost generate high output.
usually the market leaders, when its selling price per unit is lower than other competitors in the markets, then we can say that they are having great economic of scale. it can be use in cost based strategy and also the pricing strategy. this is what is can think off, particularly it can be use widely
Is it any reducing cost can be said is economic of scale such as reduce labour cost, overhead cost and etc?
Sometimes,I would argue,its hard to separate cost reductions due to scale factor alone from other factors.Geometrical economies of scale would be an example of pure economy of scale.If for example a cubic shaped furnace was doubled in size the amount of metal(other things being equal)used in its manufacture would increase by a factor of four while the volume of the furnace would increase by a factor of eight.
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