ECO 204 Week 3 Discussion 2 | Assignment Help | Ashford University

ECO 204 Week 3 Discussion 2 | Assignment Help | Ashford University

Week 3 - Discussion 2

Long-Run Average Cost and Economies of Scale

Prior to beginning work on this discussion, read David Trainer’s article, Sysco Feasts on Economies of Scale for Strong Competitive Advantage (Links to an external site.), as well as Chapter 8 in your textbook, and respond to the following:

·         How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve?

·         Describe economies of scale and diseconomies of scale.

·         What are the determinants of economies of scale and diseconomies of scale, respectively?

·         Using a real-world company (other than Sysco), explain the causes of economies of scale for your company.

·         How would economies of scale help your company compete in its industry?

Your initial post should be a minimum of 300 words.

Guided Response: Respond substantively (a minimum of 100 words) to at least two of your classmates’ posts. What is similar or different between your post and theirs? What advice could you offer them? Substantive responses use theory, research, experience, or examples to support ideas and advance class knowledge on the discussion topic.

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