Long-run Average Total Cost and Economies of Scale

This lesson distinguishes between a firm's short-run average total cost and its long-run average total cost, and explains how economies of scale may help a firm achieve lower average costs as it increases its output in the long-run.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

[@robbyjones8906]

Jason Walker you're the man, going to make me pass my Econ exam worth 30%, thank you for doing what my econ teacher could never do... teach me

[@Bentami]

I like you Mr. Welker, nice concise explanations. My $100+ textbook cant explain it at all. I always end up back here where your explanations instantly click.

[@szhaloyu]

Thank you so much! This cleared all my doubts on LATC

[@freddyflores6608]

Great work, you know when someone has expertise in its field.

[@amirestebari1470]

Wow..I had a lot of difficulty understanding Long-run ATC before watching your video. But now, it is super clear for me. Thank you!

[@enragedenglish]

Wow that was such a good clear explanation. THankyou so much!

[@anupamagopinathan2507]

You are amazing. Thank you for this especially for the historical example!!!

[@Team4640]

you are the best jason walker!!

[@daryagholami9725]

this topic was perfectly clarified for me thank you Mr Welker

[@vinayak186f3]

One word - AWESOME🔥🔥🔥🔥🔥 , Thoroughly enjoyed the lecture , thank you 👍

[@evangelisttbere]

A great teacher. i was struggling

[@waqasahmad6111]

Thanks for lucidity of this topic. Thank you very much again

[@sumanthadlagatta]

very much thanks to the jason I understood very well about this topic after listening to this video

[@ingays]

Great video! It was very helpful thank you

[@nitikadesai7976]

Thank you, the video is as awesome as you are

[@iffahsamsir4396]

Omg youre a life saver ! Thankyou so much 🙆‍♀️🙆‍♀️🙆‍♀️🙆‍♀️🙆‍♀️🙆‍♀️🙆‍♀️

[@saimakhalid8076]

every time when I watch ur videos jason to clear all of my concepts the starting song always force my children to dance...

[@keotshepilemandona9882]

wow with your videos i understand better ..because once i using a textbook it took 2 hours to cover this work ..but noe am good

[@medobahri6177]

thank you very much this will help me pass my exam

[@akankshagupta5494]

thank you Jason :)

[@AnaGraceSaab]

jason, i do appreciate most of your videos but i need to clarify something, base on the above video, economies of scale/diseconomies follows increasing returns to scale/decreasing returns to scale?as i've known, the former measures cost and output and the later relates inputs to output.

[@saimakhalid8076]

hello Jason thanks for ur response.I am preparing for a competitive exam and I need ur help to clear my concepts.can u please explain the revealed preference theory in detail through a video.

[@amandagezahegne7038]

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[@realdvgarg]

I hope my IB Econ paper is marked by you (if you're an IB Examiner) because I'll know it's in the right hands.

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[@abdimajidogle9439]

Thanks you jason

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Me welker, you're really good.

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thank you very much!

[@skyzoom2488]

Great.

[@SaggRonn]

veryyy helpfull indeed! i dont even feel the need to go to classes anymore! LOL

[@scdgjilh]

10/10

[@kahlonladhamunda3589]

God bless you professor,you are great .

[@edwardwills1137]

what is the song at the start

[@Tamara1465]

+Edward Wills It's making me nervous by brad sucks

[@saimakhalid8076]

Jason tell me what is actually the average cost? theoretically

[@JasonWelker]

It is, actually, the per unit cost of production.

[@naimamuhammad9830]

Helpful but you're quite fast..

[@user-xd2wt3kj8y]

why the average cost goes on decreasing when the average product goes on increasing?

[@000grga000]

The video is pretty good,but in my book (Pindyick & Rubinfield) they explained that: Inreasing returns to scale-output more than doubles when the quantities of all inputs are doubled Economies of Scale-a doubling of output requires less than a doubling of cost It's not the same

[@milbxbycol9426]

My econ teacher is shit, this one is the shit.