Meaning of the word "economy of scale" in English

What does "economy of scale" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

economy of scale

US /ɪˈkɑː.nə.mi əv skeɪl/
UK /ɪˈkɒn.ə.mi əv skeɪl/
"economy of scale" picture

Noun

a proportionate saving in costs gained by an increased level of production

Example:
Large companies often benefit from economies of scale that smaller firms cannot achieve.
The merger was designed to create economies of scale in the manufacturing process.