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> Don’t you loose economies of scales On the contrary, you gain economies of scale. The way the economies of scale work is if you build n identical widgets, it
by credit_guy 6y ago
> Don’t you loose economies of scales
On the contrary, you gain economies of scale. The way the economies of scale work is if you build n identical widgets, it costs you less than n times the cost of building one single widgets. In other words the unit cost of a widget goes down as the number of produced widgets increases.
If you want to produce a bigger widget though, you generally have diseconomies of scale. For example the Saturn V rocket was about 20 times bigger than the Titan 2 rocket (from which it was derived) but cost about 60 times more.
So, if a Gigawatt-size nuclear power plant is too expensive to build, you build 20 plants of 50 MW each. This is how you achieve economies of scale.