the.com/economies of scale
Buying in bulk so each unit costs less, including your soul.
means The cost advantage a business gets as it grows bigger — making more units lets you spread fixed costs thinner and negotiate materials cheaper, so each item ends up costing less to produce.
from A 20th-century economics term built from plain parts: 'economies' meaning savings or efficiencies (from Greek 'oikonomia,' household management), and 'scale' meaning size or extent (from Latin 'scala,' a ladder — literally the rungs you climb to measure something bigger). Economists stitched the phrase together to describe a pattern they kept observing in industrializing economies: bigger factories, bigger orders, bigger output — smaller cost per unit. No single inventor claims it; it emerged as standard vocabulary in economics textbooks as mass production itself took hold.
- origin
- Formalized by economists studying industrial cost curves
- flip side
- Past a point, bigness causes diseconomies of scale
- classic example
- Costco membership exists because of this
- not just size
- Requires spreading fixed costs over more output