I'm not sure how do you mean. You get economy of scale by saving in costs gained by an increased level of production.
It's cheaper to create 100 widgets for 100 small reactors in 10 locations, then for 10 large reactors.
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The efficency also scales with size in this case - separate from the per unit production scale.
It is still cheaper and more efficient to have a 1.2 GW diesel power plant instead of a warehouse of thousands of back up generators wired together.
I disagree. If one generator fails, it's not a big problem. If you have a failure in a large reactor it's a biggie, so you have to use very expensive materials and design to avoid failure.