An Overview of Economies of Scale
This post will help enhance your understanding of economies of scale, in line with your Prelim Economics syllabus. Economies of scale refer to the reductions in a firm’s average costs as output increases. In other words, they are the ‘savings of size’ if a firm is able to increase the size or scale of its production process in the long run.
The videos below look at economies of scale and diseconomies of scale, and characteristics of each.
Economies of Scale
Diseconomies of Scale