(8) Economies of Scale II: Causes & Interplay with Market Size
Economies of Scale, Diseconomies of Scale, Constant Returns to Scale, Shape of Long Run Average Cost Curve, Scale and Market Size
This explores and explains possible causes or sources of economies of scale. Then the interplay between scale and overall market size is discussed as a way of explaining the number and size distribution of firms in a market.
Crane, Steven E., "(8) Economies of Scale II: Causes & Interplay with Market Size" (2011). Principles of Microeconomics. Paper 54.
Ability to identify and explain possible causes of Scale Economies. Ability to predict size distribution of firms in a market based upon information about Scale and the overall size of the market.
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