Cost savings resulting from aggregation of resources and /or mass production. In particular, it refers to decreases in average cost when all factors of production are expanded proportionately. For example, hospital costs for a unit of service are generally less in 300 than 30 bed hospitals. (There is some evidence that they may be greater in 1,000 bed than 300 bed hospitals, a diseconomy of scale.) Frequently used, less accurately, to refer to savings achieved when underused resources are used more efficiently. For example when many individuals use the same product, or when health care facilities share in the costs and use of expensive equipment (e.g., automated laboratory equipment) or otherwise underused and highly trained personnel (e.g., open-heart surgery teams).