Purchase Solution

concepts of economies and diseconomies of scale

Not what you're looking for?

Ask Custom Question

Use the concepts of economies and diseconomies of scale to explain the shape the firms long- run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long run ATC curve have on the structure of an industry?
(show curves/graphs in the solution) MBA level

Purchase this Solution
Solution Summary

Using the concepts of economies and diseconomies of scale to explain the shape the firms long- run ATC curve.

Solution Preview

The long-run ATC curve is U-shaped. At first, long-run ATC falls as the firm expands and realizes economies of scale from labor and managerial specialization and the use of more efficient capital. The long-run ATC curve later turns upward when the enlarged firm experiences diseconomies of scale, usually ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • ECONOMIES OF SCALE

    79779 ECONOMIES OF SCALE What are some facors that give rise to economies of scale? and Diseconomies? Economies of scale can be termed as the increase in efficiency of production as the number of goods being produced increases.

  • shape of the long run average total cost curve

    158669 How can the extent to which the presence of economies and diseconomies of scale in an industry help account for the size and the number of firms in that industry?

  • Economies/Diseconomies of Scale

    488910 Economies/Diseconomies of Scale 1 What is the difference between economies of scale and diseconomies of scale and what are the reasons for using each? How do you purchase these types of economies?

  • Analyzing cost function of a firm

    Solution explains the methodology to find the range of output for which given cost function has economies of scale, diseconomies of scale and constant return to scale.

  • Diseconomies of Scale

    General Motors and Honda are some companies that enjoy economies of scale because of increased scale of operation and reduced average cost. But, General motors can be an example of diseconomies of scale as there are thousands of workers in the firm.

  • Economies and Diseconomies of Scale

    208078 Economies and Diseconomies of Scale 1. Explain the difference between short run and long run as they are used in economics. 2. Differentiate between Economics of scale and Diseconomies of scale. 3.

  • Knowing range of economies & diseconomies for cost function

    Graph for Long run average cost (LRAC) and Long run marginal costs(LRMC) is plotted. Output ranges have been worked out for which economies and diseconomies of scale exits.

  • What Can George Steinbrenner and the Yankees Teach Us About Economies and Diseconomies of scale?

    416716 Steinbrenner and the Yankees are correlated with Economies and Diseconomies of scale. What Can George Steinbrenner and the Yankees Teach Us About Economies and Diseconomies of scale?

  • Economies of Scale for LRATC

    Over what range of output does this firm experience: (a) economies of scale; (b) constant returns; and (c) diseconomies of scale? Please refer to the attachment.

View More Related Solutions