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Economies and Diseconomies of Scale

Long Run ATC Curves

Long Run ATC Curves

This graph shows that as the output (production) increases, long run average total cost curve decreases in economies of scale, constant in constant returns to scale, and increases in diseconomies of scale.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "MBAecon - economies of scale, diseconomies of scale, constant returns to scale."
    http://mbaecon.wikispaces.com/economies+of+scale,+diseconomies+of+scale,+constant+returns+to+scale Wikispaces CC BY-SA.

Related Terms

  • average cost
  • return to scale
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