Scale of production is set by the
size of plant, the number of plants installed and the technique
of production adopted by the producer.
The economies of large scale
production are classified by Marshall into (1)
Internal Economies and (2) External Economies.
scale production firms has the actual survival value side by with large scale
production. The facts are that small scale firms have a
firm footing along with the large scale firms.
By 'localization of industries'
meant the tendency on the part of industries to
be concentrated in regions which are most suited for their
Optimum firm is that
firm which fully utilizes its scale of operation and produces
optimum output with the minimum cost per unit production.