Results are out! Find what you Get quick advice or join the chat
Hey! Sign in to get help with your study questionsNew here? Join for free to post

Diagrams for market share and economies of scale

Announcements Posted on
For applicants, undergrads and postgrads: Find out what's happening during Student Money Week here 05-02-2016
Are postgrad degrees a waste of time? Have your say and be in with a chance of winning a £30 Amazon voucher 29-01-2016
  1. Offline

    I was doing a test paper from the teacher, and two of the questions I couldn't answer, and I cannot find anything in my notes.

    How do I do these into a diagram?
    - Economies of scale
    - Market share

    If someone could do one in paint and then upload it to or something please?

    P.S I'm fully aware what economies of scale and market share are, I have no clue on how to do a diagram!
  2. Offline

    The economies of scale diagram is simply an AC curve, with cost and output on the axes; the beginning of the curve up to the lowest point shows economies of scale (the fall in LRAC...) whilst the minimum point up to the end of the curve shows diseconomies of scale. As for market share, it depends on the how dominant the firm is; in say, a monopoly or an oligopoly, a firm is able to make large abnormal profit due to a lack of competition, or complete absence of it.

    Oppositely however, a much more contestable market will prevent any gain in abnormal profit a la this diagram

    Hope this helped


Submit reply


Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: May 21, 2012
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Today on TSR

Dropping out of Oxford

Find out what it's like in Ethereal World's blog

How much money do you spend a week at uni?
Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.