Ease through Economies of Scale

Economies of scale: Economies of scale means percentage change in average costs of production following a 1% increase in output (drop in average costs due to increase in output).

External Economies of scale:

Example 1: At first meditation was one such activity which I felt was difficult & frustrating. However, with the time & practice, it has become a routine. Now I feel it is easier & can do it with much focus than earlier.

Example 2: An experienced professional gets better with time & practise to perform better later.

Internal Economies of scale:

Example 1: Software companies in Bangalore are largely found in the area of Electronic city. Due to various factors like shared resources, Recruitment, Innovation & Information sharing.

Example 2: If you have ever visited trading markets in any field, be it vegetables, fruits, flowers, etc., you would have noticed that different traders within the same business are found in one area due to advantages in customers at one place, manpower, information sharing, etc.