The beginning of this economic concept, economies of the scale, can be dated back to Adam Smith<br />who was a Scottish pioneer of political economy and an important key figure during the Scottish Enlightenment Era<br />and was based on the idea of obtaining greater production return profits through the use of the division of labor.<br />Economies of the scale are referred to as cost advantages that a company gets by altering its levels of production processes.<br />The company gets its advantages through economies of scale due to the inverse relationship that exists between the per unit fixed cost and the quantity produced.<br />The lesser the quantity of produce, greater will be the per unit fixed cost of the product.<br />The implementation of the economies of scale can take place at any of the firm stages of the production processes<br />including all the levels economic production of the commodity except the one that comprises the involvement of the buyer.<br />Also, a company can implement the economies of scale in its marketing sector by hiring a large number of marketing professionals.
