A2 Economics: Economies and Diseconomies of scale in 8 mins

[eswyatt]

Not sure I agree with what you said @ 2:37. The per-unit cost savings that comes from utilizing more of the existing machines seems to me to be more a movement along the short-run average cost curve than a movement along the LRAC curve. The firm was "too big" for the quantity it was producing (after all, it could have rented the machine-thus shrinking in size) but when it produces more it's "just big enough." LRAC curve is an envelope curve of all possible firm sizes (all levels of capital (k)).

[YNSS1994]

Thank You very much it was really helpful,but i really wished u explained wat exactly is internatl eco and diseconomies and external eco and diseconomies but thanks anywayz

[rahulsharadshinde]

do u take private tutions

[williamskeigan]

love your accent!

[CuteChadz]

@tanreu Yeh thats if all your products are similar and you havent diversified. Unilever had this problem I will back I can't remember what happened sorry :(