Economies and Diseconomies of Scale CFA Level 1

Economies of scale economies of scale Economies of scale are essentially the cost advantages that a firm can gain by expanding its output Economies of scale reduce the long run average cost per department of architecture Economies of scale means a business has decreased cost-per-item while increasing their output Diseconomies of scale means that a company is facing increased

biofun In most perfectly competitive models, it is assumed that production takes place with constant returns to scale This means