economies of scale
It is cheaper to produce more at a time at a lower production cost per unit.
Just because you make half the amount does not mean you have to pay half the cost. Example: blast furnace
Hiring a large number of workers and having them specialize in a field generates benefits from the division of labor.
Industries that are labor-intensive and where the same work is done over and over again will increase productivity as workers become more proficient. nishio.iconBut I think those jobs will be replaced by computers in the future.
another approach
Talk about indivisibility.
(1) Efficiency by producing related products together
(3) Advertising efficiency and corporate brand effect
(4) Efficiency and knowledge sharing by consolidating research and development
(5) Efficiency by consolidating transportation and sales
(6) Decrease in transaction costs per amount due to the larger size of the financing
---
This page is auto-translated from /nishio/規模の経済 using DeepL. If you looks something interesting but the auto-translated English is not good enough to understand it, feel free to let me know at @nishio_en. I'm very happy to spread my thought to non-Japanese readers.