Economies of Scale and Average Cost

P. J. Curwen

Chapter Chapter 12 in The Theory of the Firm, 1976, pp 86-90 from Palgrave Macmillan

Abstract: Abstract The shape of the average-cost curve is determined by the relationship between total cost and the scale of output. The U-shaped average-cost curve which appeared in the traditional models of perfect competition and monopoly reflected the assumption that a firm would initially have access to economies of scale, but that after a time any further expansion of output would cause average cost to rise as diseconomies of scale set in.

Keywords: Optimum Size; Survivor Technique; Output Range; Efficient Firm; Perfect Competition (search for similar items in EconPapers)
Date: 1976
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DOI: 10.1007/978-1-349-15645-0_12

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