Growth of a Corporation Notes 1. Define scale of operation:the volume in which production is been made. For example volume , liters, Tonnes, Gallons, Pieces etm. It is simply the unit of the Product produced during a course of operations. 2. Define economies of scale:refers to the phenomenon where the average costs per unit of output decrease with the increase in the scale or magnitude of the output being produced by a firm. 3. What are the cost benefits of economies of scale:Economies of scale are cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit. This is because the cost of production is spread over more units of production. 4. Define diseconomies of scale:Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm.