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Economies of scale is the cost advantages that Rosetta Stone Inc. (RST-NTSE) obtains due to size. The greater the volume, the greater the advantages… … "Economies of Scale (Rosetta Stone Inc. (RST-NTSE))" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Economies of Scale (Rosetta Stone Inc. (RST-NTSE))" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.