What you’ll learn to do: define and explain long-run costs, economies of scale, diseconomies of scale, and constant returns to scale
Have you ever wondered why toilet paper at Costco seems so much cheaper there than at your local grocery story? In this outcome, you’ll how Costco and other warehouse stores manage to keep costs so low. You’ll learn about economies of scale and why it’s helpful to think of costs in the long-run.
The learning activities for this section include:
- Reading: Long Run Costs
- Reading: Economies of Scale
- Self Check: Long Run Costs and Economies of Scale
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.