Explore BrainMass
Share

Explore BrainMass

    concepts of economies and diseconomies of scale

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com October 9, 2019, 6:39 pm ad1c9bdddf
    https://brainmass.com/economics/pricing-output-decisions/concepts-economies-diseconomies-scale-94028

    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 ...

    Solution Summary

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

    $2.19