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Video Shorts on Economies and Diseconomies of Scale

Geoff Riley

16th February 2024

Here is a selection of new shorts on economies and diseconomies of scale.

Internal economies of scale explain a fall in long run average cost for a business as a result of increasing its own scale of production or operations.

External economies of scale are cost advantages that accrue to a firm as a result of the growth of an industry. They are also known as agglomeration economies.

The minimum efficient scale (MES) is the smallest output level at which a firm can produce at the lowest possible average cost.

Diseconomies of scale are the rise in long run average cost due to an increase in organizational size. Diseconomies of scale are the opposite of economies of scale.

This short looks at technical economies of scale.

This short looks at purchasing economies of scale.

This short looks at financial economies of scale.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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