Economies of scale

Economies of scale means that it gets cheaper to produce something in bigger amounts. That might sound confusing at first, but imagine you are making cakes in your kitchen. You can make one cake or many cakes. If you make one cake it will take you a lot of time to do all the steps like baking, cutting, and decorating. If you make more than one cake, you can use the same bowl, the same oven and the same ingredients to make all the cakes. So you can make many cakes much faster than making just one. That is what economies of scale means; it costs less per cake to make many cakes than to make one.