{{unreferenced, date=August 2013
The socially optimal firm size is the size for a company in a given industry at a given time which results in the lowest production costs per unit of output.
Discussion
If only diseconomies of scale existed, then the long-run average cost-minimizing firm size would be one worker, producing the minimal possible level of output. However,
economies of scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
also apply, which state that large firms can have lower per-unit costs due to buying at
bulk
Bulk can refer to:
Industry
* Bulk cargo
* Bulk liquids
* Bulk mail
* Bulk material handling
* Bulk pack, packaged bulk materials/products
* Bulk purchasing
*
Baking
* Bulk fermentation, the period after mixing when dough is left alone to f ...
discounts (components, insurance, real estate, advertising, etc.) and can also limit competition by buying out competitors, setting