---
title: Economies of Scale
description: Economies of scale are competitive cost advantages that firms enjoy when they achieve efficiency in production. The higher the production and the larger the business, the wider the fixed and variable costs can be spread.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Economies of Scale](https://www.realized1031.com/glossary/economies-of-scale)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 27, 2022 12:00:00 PM

Economies of scale are competitive cost advantages that firms enjoy when they achieve efficiency in production. The higher the production and the larger the business, the wider the fixed and variable costs can be spread.

Specialization of labor and technology can enable a firm to expand its productive possibility frontier (PPF).

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