Economies of, versus Returns to, Scale: A Clarification


Publication: Journal of Economic Education

Volume: Volume 19, No. 4

Issue: Fall 1988

Pages: pp. 331-335

Author(s): Christopher Ross Bell (Davidson College)

Title: Economies of, versus Returns to, Scale: A Clarification

Abstract: Textbook discussions of the shape of the long-run average cost-curve are misleading because they do not accurately or properly distinguish between returns to scale and economies of scale. The differences and their implications are identified and explained.



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