Scale of Production

Topic Content:

Definition of Scale of Production:

Scale of production is the growth of a firm or an industry, as a result of expansion in the size of production. Scale of production has to do with an (increase) improvement in output, and (reduction) decline in its cost of production (cost per output)

In scale of production, the firm can use huge capital, employ many workers, and also produce a large quantity of goods. The firm can also use a small amount of capital, and primitive tools, employ few people, and also produce in small quantities. It all depends on the type of scale being used.

Types of Scale of Production: Large, Medium, and Small Scale Production.

Firm:

A