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Scale, average cost and the long-run curve

Scale, average cost and the long-run curve

Long-run average cost curve with output on the horizontal axis, average cost per unit on the vertical axis, economies of scale before minimum efficient scale, and diseconomies of scale after it Scale of operations means the size of a business's activity, measured by output, employees, sites, revenue or market share. Firms can increase scale through organic growth or external growth, and this can change costs, competitiveness, bargaining power and risk.

The influence of scale of operations on a business Lesson

  1. A Level
  2. /Business
  3. /The influence of scale of operations on a business

Step-by-step lessons on OCR A Level Business The influence of scale of operations on a business. Each one builds up to exam-style questions. Build up your knowledge of the core business functions first, then focus revision time on the strategy and evaluation-heavy topics, since these carry the most marks.

Lessons