TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

ECONOMY SCALE [1 record]

Record 1 2012-08-24

English

Subject field(s)
  • Corporate Economics
  • Production (Economics)
  • Production Management
DEF

Reduction in the average cost of a product, achieved by increasing the volume of output and in that way using labour, machinery, and other factors of production more efficiently.

CONT

For a smaller country, such as Canada, achieving economies of scale may depend on having access to larger foreign markets, since the Canadian market by itself may be too small to support the most efficient volume of production in many industries. A firm should be able to produce a product more efficiently by making use of modern machinery and equipment, skilled and specialized labour, interchangeable parts, automation and large-scale distribution, and be able as a result to fund on-going research and development.

OBS

At some point, when marginal cost equals average cost, a plant will stop yielding economies of scale; it will then be at a point where diseconomies of scale begin, with each extra unit of output costing more than the average cost and thus being unprofitable. In other words, a plant can produce both too little and too much.

OBS

economy of scale: term usually used in the plural.

Key term(s)
  • economies of scale

French

Domaine(s)
  • Économie de l'entreprise
  • Production (Économie)
  • Gestion de la production
DEF

Abaissement du coût unitaire de production au fur et à mesure que la production augmente.

OBS

économie d'échelle : terme habituellement utilisé au pluriel.

Key term(s)
  • économies d'échelle

Spanish

Campo(s) temático(s)
  • Economía empresarial
  • Producción (Economía)
  • Gestión de la producción
DEF

Disminución de los costes medios al aumentar la producción y distribuirse los gastos fijos entre mayor número de factores de producción.

Key term(s)
  • economía de escala
Save record 1

Copyright notice for the TERMIUM Plus® data bank

© Public Services and Procurement Canada, 2024
TERMIUM Plus®, the Government of Canada's terminology and linguistic data bank
A product of the Translation Bureau

Features

Language Portal of Canada

Access a collection of Canadian resources on all aspects of English and French, including quizzes.

Writing tools

The Language Portal’s writing tools have a new look! Easy to consult, they give you access to a wealth of information that will help you write better in English and French.

Glossaries and vocabularies

Access Translation Bureau glossaries and vocabularies.

Date Modified: