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Analysis Diagram: Scale Economies and Profitability

AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

This short revision video analyses how internal economies of scale for a business in the long run can lead to lower equilibrium prices and higher profitability. Both consumer and producer surplus can rise if the economies of scale are significant.

Analysis Diagram: Scale Economies and Profitability

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