4. Economies of Scale
Watch the video at http://www.youtube.com/watch?v=T01i_vp2mJE
Why increasing the output (q) can help lower the production cost of
making a bottled water…
5. Profit
http://www.statisticbrain.com/bottled-water-statistics/
The firm can make .10C on every bottled water it sells by leveraging
its technology to lower its production cost…
6. Objective & Discussion
Understand why economies of scale is important
for a firm…
What is economies of scale?
What factors in the firm generate economies
of scale?
Why diseconomies of scale may occur?