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3.3.3 Economies and diseconomies of scale
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Scale and average cost

Scale and average cost

Economies of scale occur when long-run average cost (LRAC) falls as a firm expands its output. Increasing returns to scale can cause LRAC to fall when input prices are unchanged, but economies of scale can also arise from lower input prices, such as purchasing discounts or cheaper finance.

3.3.3 Economies and diseconomies of scale Lesson

  1. A Level
  2. /Economics
  3. /3.3.3 Economies and diseconomies of scale

Step-by-step lessons covering Edexcel A A Level Economics 3.3.3 Economies and diseconomies of scale for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.