Topic Videos

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

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

Last updated 20 Apr 2022

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)

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