Asked by kyaira jackson on May 12, 2024
Verified
Describe how a study group of economics students could experience economies of scale as they study for an economics exam.
Economies of Scale
Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.
- Learn about the mechanisms of economies and diseconomies of scale and how they alter cost dynamics.
Verified Answer
KC
Kseniya ChepelovaMay 14, 2024
Final Answer :
In this example, the costs of production could be the costs of studying the material, measured in time spent per chapter. Specialization of labor can produce economies of scale. Specialization of labor could occur if each member of the study group focuses on a different chapter and explains that material to the group so that each member of the group learns the material in less time than she would if she were studying alone.
Learning Objectives
- Learn about the mechanisms of economies and diseconomies of scale and how they alter cost dynamics.