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CLEAR definition of technical economies of scale

Hi,

Can someone give a really clear, specific and concise definition of technical economies of scale. All the definitions I've found, including the textbook's, are far too generic.

Kind regards

Reply 1

dean01234

Original post by JohnG98

Hi,

Can someone give a really clear, specific and concise definition of technical economies of scale. All the definitions I've found, including the textbook's, are far too generic.

Kind regards

Economies of scale is where firms are able to reduce average cost by increasing their total production.

Technical economies of scale is where a large company is able to invest in expensive specialist technology / machines which would not be viable for a smaller company. For example its efficient for supermarkets to invest in self check outs, whereas it would take decades for your local corner shop to make their money back.