Economies of Scale/Scope, Learning Curve | CourseNotes

Economies of Scale/Scope, Learning Curve · input proportions change >> expansion path no longer a straight line · firm can double output for less than twice the ... Skiptomaincontent AvailableResourcesPremiumContent MacroEconomics MicroEconomics YouarehereHome»APEconomics»MicroEconomics EconomiesofScale/Scope,LearningCurve PrinterFriendly economies/diseconomiesofscale  inputproportionschange>>expansionpathnolongerastraightline firmcandoubleoutputforlessthantwicethecost>>economiesofscale firmneedsmorethantwicethecosttodoubleoutput>>diseconomiesofscale EC(cost-outputelasticity)=MC/AC EC<1>>economyofscale EC>1>>diseconomiesofscale EC=1>>neithereconomiesordiseconomiesofscale economies/diseconomiesofscope  jointoutputofsinglefirmisgreaterthanoutputby2separatefirms>>economiesofscope jointoutputofsinglefirmislessthanoutputby2separatefirms>>diseconomiesofscope ifproductionof1productconflictedw/productionof2ndwhenbothproducedtogetherjointly SC=[C(Q1)+C(Q2)-C(Q1,Q2)]/C(Q1,Q2) measuresdegreeofeconomiesofscope SC>0>>economiesofscope SC<0>>diseconomiesofscope learningcurve-longtermintroducesnewinformationtoincreaseefficiency  workers/managerscanbecomebetteradaptedtotheirjobs,moreexperienced,moreefficient>>long-termaveragecostcandecrease learningcurvedescribesrelationbetweenoutputandamountofinputsneededforeachoutput L=A+BN-bN=unitsofoutputproduced L=laborinputperoutputunit A,B,bconstants(whereA,Bpositiveand0>moreimportantlearningeffect economiesofscalemovesalongtheaveragecostcurve,learningcurveshiftstheaveragecostcurvedownwards Subject:  Economics SubjectX2:  Economics ‹CostFunction up EffectofElasticitiesonSurplus› Printer-friendlyversion RelatedContent Chapter6:Markets,Maximizers,&EfficiencyNotesSupplyandDemandLectureNotesChapter5:Elasticity:AMeasureofResponseNotesbusinesstermsChapter2EconomicsSummary EconomicsContent psychch10 macroch1 macroch2 IntrotoBusinessIIstudyguide SupplyandDemandLectureNotes Chapter2EconomicsSummary Chapter6:Markets,Maximizers,&EfficiencyNotes Chapter5:Elasticity:AMeasureofResponseNotes economic TechandFinancepretest EconomicsForums Fiatcryptoliquidityblockchain Stickers Howtoextractemailsbykeywords? Privacyandcrypto Yourfavoritecasinos Question Businesscredit Goldasaninvestment NewZealandgambling Thaibettingwebsites2022 NeedHelp? Wehopeyourvisithasbeenaproductiveone.Ifyou'rehavinganyproblems,orwouldliketogivesomefeedback,we'dlovetohearfromyou. Forgeneralhelp,questions,andsuggestions,tryourdedicatedsupportforums. IfyouneedtocontacttheCourse-Notes.Orgwebexperienceteam,pleaseuseourcontactform. NeedNotes? Whilewestrivetoprovidethemostcomprehensivenotesforasmanyhighschooltextbooksaspossible,therearecertainlygoingtobesomethatwemiss.Dropusanoteandletusknowwhichtextbooksyouneed.Besuretoincludewhicheditionofthetextbookyouareusing!Ifweseeenoughdemand,we'lldowhateverwecantogetthosenotesuponthesiteforyou! AboutCourse-Notes.Org AdvertisingOpportunities NewsletterArchive OurBlog Careers PlagiarismPolicy PrivacyPolicy TextbookRequest DMCATakedownRequest