(7) Economies of Scale I: The Concept
Economies of Scale, Diseconomies of Scale, Constant Returns to Scale, Shape of Long Run Average Cost Curve
This explores the concept of Economies of Scale, and how it relates to the shape of the Long Run Average Total Cost Curve (LRAC). It describes the notion of "scale" as a volume of output produced in a time period measure. It establishes the "Economies of Scale" are associated with a declining LRAC, and "Diseconomies of Scale" are associated with a rising LRAC.
Crane, Steven E., "(7) Economies of Scale I: The Concept" (2011). Principles of Microeconomics. 55.
Ability to define and explain the concepts of Economies of Scale and Diseconomies of Scale. Ability to relate these concepts to the shape of the Long Run Average Total Cost Curve.
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