What is referred to as the cost reductions enjoyed by a single business as it grows?

The term that describes the cost reductions enjoyed by a single business as it grows is known as "internal economies of scale." This concept refers specifically to the advantages that a firm experiences due to its own growth and increased production levels. As a business expands, it is often able to lower its per-unit costs through various efficiencies.

These efficiencies can arise from several factors, such as better utilization of resources, purchasing inputs in bulk at lower prices, spreading fixed costs over a larger output, employing more efficient technologies, and improving operational practices. Essentially, as a company produces more, it can often negotiate better deals with suppliers, streamline its production processes, and leverage its size to gain competitive advantages in the market.

While the term "economies of scale" can also cover both internal and external factors that lead to cost reductions across the industry, "internal economies of scale" specifically emphasizes the cost savings that are unique to the individual firm as it grows larger. Concepts like "forward vertical integration" relate more to business strategy concerning supply chain management and control, while "minimum efficient scale" refers to the lowest point where a firm can produce efficiently but does not inherently capture the ongoing internal cost reductions associated with growth.