tutor2u | Key Diagrams - Long Run Average Cost (Economies and…

Student 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)

Recommended

Exam support for 2022

Online Grade Booster Courses for A-Level Exams in May & June 2022

Exam technique, advance information support, live revision and more from the tutor2u subject specialist teams

Enrol now

© 2002-2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.