Policonomics's video: C 5 Economies of scale Cost - Microeconomics

Learn more: http://www.policonomics.com/economies-of-scale/ This video explains how economies of scale affect production. We start by explaining how the average cost curve defines when economies of scale appear, and then analyse the difference between economies and diseconomies of scale. Related videos: -Returns to scale: https://www.youtube.com/watch?v=A5E1sOYh6No&list=PLr3ti8G3MCupcsVLkr7ayC_ziNbi9l4De&index=1 -Fixed and variable costs: https://www.youtube.com/watch?v=vMYG3QFovFA&index=1&list=PLr3ti8G3MCuokrpRv_PZETQFCLj6zkKv1 Related articles: -Natural monopolies: http://www.policonomics.com/natural-monopoly/ -Returns to scale: http://www.policonomics.com/returns-to-scale/ Thank you for watching! http://www.policonomics.com Learn, and enjoy!