Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Free Economics resources

Topic Videos

Key Diagrams - Long Run Average Cost (Economies and Diseconomies of Scale)

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 20 Apr 2022

Share this content:

In this short video we work through the key diagram showing the long run average cost curve for a business experiencing economies of scale and (eventually) diseconomies.

We also look at the difference between internal and external scale economies.

Internal economies of scale cause a movement down the long run average cost curve for a business. Whereas external economies of scale cause a downward shift in the long run average cost curve.

Key Diagrams - Long Run Average Cost (Economies and Diseconomies of Scale)
Share this content:

You might also like

Breaking Free from Constraints: The Economics of Long-Run Costs

10th September 2026

In the News Teaching Activity – Why might Allianz insurance takeover the AA? (Sept 202

10th September 2026

In the News Teaching Activity – Why might Allianz insurance takeover the AA? (Sept 2026)

10th August 2026

Micro Case Study: Thames Water

Topical case studies

In the News Teaching Activity – Is the UK falling for fried chicken? (Feb 2026)

16th February 2026

In the News Teaching Activity – Should Netflix be allowed to acquire Warner Bros? (Dec 2025)

11th December 2025

Why Pints Are Hitting £5 - It's No Joke!

1st April 2025

In the News Teaching Activity – why is GSK acquiring US firm IDRx? (Jan 2025)

20th January 2025