Economies of scale: A situation where long-run average total cost decreases as output increases.
How to apply it: Explain how economies of scale arise from specialization, bulk purchasing, or efficient use of technology.
Course: AP Microeconomics · Unit: Production, Cost, and the Perfect Competition Model
Practice questions about Economies of scale on AimFive — get rubric-based feedback showing exactly which points you earned.
AP and Advanced Placement are trademarks of College Board. AimFive is not affiliated with or endorsed by College Board.