The foundation of the economy, it can be said, is trade. Since ancient times, this has been the most popular economic activity, starting from what was barter. Humanity, in this aspect, has been in charge of perfecting all the aspects that revolve around this practice, characterized mainly by making it its sustenance. This is how the economy that is known today was born, due to the influence of various economic schools of thought, in addition to the exploitation of natural resources present on Earth. Both the consumer and the company in charge of production participate in this economy; establishing a series of proposals that will satisfy the buyer and increase the popularity of the producer.
Similarly, one can also speak of both microeconomics and macroeconomics, differentiating one from the other because the former studies the consumer, while the latter deals with global economic issues. Within microeconomics, we can find the economy of scale; This is defined as the reduction in the cost of a product, determined by the growth of the company that manufactures it. It is taken as a totally opposite concept to that of diseconomy of scale, which supposes an increase in the cost of production, in contrast to an increase in the level of production.
It is known that, for the most part, economies of scale manage to reduce costs through simple options, such as reducing the interest rate by banks, in addition to establishing long-term contracts with suppliers of raw materials. Another important factor is the marketing and presentation of the product. Finally, it should be noted that expansion and soon cost reduction would bring, as a consequence, a natural monopolization of the market, since it is more profitable for a company to expand than for others to enter the market.
