The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run
Concept Introduction:
Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.
Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost
Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.
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