Economies of Scale:
Economies of Scale refers
to when the increase in quantity of
the production is inversely proportional to the cost of production which acts
as an advantage for producers.
In 5th century
B.C. Aluminium was extracted from alum salt. Later the discovery of the metal ore bauxite by
Danish physicist Hans Christian Ørsted
in the Year 1825 gave a new standard of extraction. But sooner Aluminium was
much more expensive than Gold because of its expensive process of extraction.
Then came Carl
Joseph Bayer, in the year 1889 from Austria, whose process of extraction of
this metal revolutionized the world. And this process is still used in the
Industries.
This destructive invention of Bayer’s Method brought an economies
of scale to the production of Aluminium so much, that Germany is at the top with respect to 43kg as the Average Per capita consumption of Aluminium in 2017.
Sources:
Shifting Aluminium Consumption Habits in India:
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