x

Scale, average cost, and the LRAC

Scale, average cost, and the LRAC

Long-run average cost curve with output on the horizontal axis, average cost per unit on the vertical axis, and economies of scale, minimum efficient scale, and diseconomies of scale labelled A firm's scale of production means the size of its operations, such as factories, workers, machines, stores, or warehouses. Economies of scale asks what happens to cost per unit when that scale increases.

1.4.5a Economies and diseconomies of scale Lesson

  1. A Level
  2. /Economics
  3. /1.4.5a Economies and diseconomies of scale