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What is Economies of Scale

Handbook of Research on ICTs and Management Systems for Improving Efficiency in Healthcare and Social Care
A concept related to the increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
Published in Chapter:
Telehealth-Based Systems for Diagnosis, Management, and Treatment of Autism Spectrum Disorders: Challenges, Opportunities, and Applications
Fiorentina Angjellari-Dajci (Rochester Institute of Technology (RIT), USA), William F. Lawless (Paine College, USA), Nitin Agarwal (University of Arkansas at Little Rock, USA), Ron Oberleitner (Behavior Imaging Solutions, USA), Barbara Coleman (Augusta State University, USA), and Masoud Kavoossi (Howard University, USA)
DOI: 10.4018/978-1-4666-3990-4.ch055
Abstract
The prevailing system for diagnosis, treatment, and management of Autism Spectrum Disorders (ASDs) in the US—the in-person service delivery—has been unable to address the increase in the demand for services and societal costs for those served, and the unattained societal benefits for those not diagnosed early enough or not offered early and intensive behavioral interventions. The authors discuss new developments in telehealth for diagnostic evaluation and ASD treatment in the US. They build a theoretical model to capture telehealth system’s potential in reaching ASD screening market equilibrium under the constraint of full utilization of provider hours and other stylized facts. The authors estimate the market demand for ASD screening in the US for year 2011. They present their progress with a case study that focuses on the potential impacts of increased access to care of technology-based telehealth on the Georgia-South Carolina border. The authors use social network analysis to envision the future of telehealth service delivery for ASDs.
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Telehealth-Based Systems for Diagnosis, Management, and Treatment of Autism Spectrum Disorders: Challenges, Opportunities, and Applications
A concept related to the increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
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The Role of Polyculture in Sustainable Agricultural Development and Prevention of Land Degradation
A term used to denote the cost-effectiveness of increased production volumes, where as production volumes increase, unit costs decrease.
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The Power of Incentives in Decision Making
Economies of scale is a situation where unit costs drop as volume increases.
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Influence of Industrialization and Energy Consumption on Environmental Sustainability: Empirical Evidence From Asian Emerging Economies
It is a phenomenon in which an organization starts to obtain a cost advantage as a result of increasing the number of units it manufactures.
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Concepts and Dynamics of the Application Service Provider Industry
Economies of scale are the achievement of lower average cost per unit through increased production, or the decrease in the marginal cost of production as a firm’s extent of operations expands.
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The Evolution of Intermediaries in E-Commerce
A situation in which average or unit costs of production for a good or service are lower for higher volumes or levels of production.
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Manufactured Risks of Reward-Based Crowdfunding Platforms
The economic principle of achieving lower unit costs through production or purchase of larger volumes of business.
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Intermediaries in E-Commerce: Value Creation Roles
A situation in which average or unit costs of production for a good or service are lower for higher volumes or levels of production
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Reconsidering E-Commerce Platforms Competition Law in Enhancing Sustainable Consumption and Production
The situation where with better-quality data (widespread and more actual) collected, platforms can develop and offer better and improved products/services to consumers as compared to their competitors. Platforms collect data (large population datasets and high dimensional datasets from users in their infrastructure. In time, the data collected led to better insights into user behavioural biases and preferences which platforms can use to provide a richer experience for users and different categories of users including potential users with better personalised algorithms.
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Escape Room for Organisation Design: International Development of Nude Project
In the context of economics and management, economies of scale refer to the phenomenon where average production costs decrease as a firm produces in larger quantities. In other words, as an organisation increases its scale of production or size, it can produce goods or services at a lower unit cost. This is because fixed costs are spread over a larger number of units produced. Daft points out that taking advantage of economies of scale can be a key strategy for reducing costs and improving operational efficiency ( Daft, 2011 ).
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