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    Explain what is meant by internal economies of scale, and analyse the link between economies of scale and a firm’s long run average cost curve. [12]


    After I've explained the types of internal economies, how do i 'analyse the link'
    ie. i say that as we increase production, there will be less cost using the LRAC diagram but how do i explain it in depth?


    Thanks.
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    (Original post by BrownieLover)
    Explain what is meant by internal economies of scale, and analyse the link between economies of scale and a firm’s long run average cost curve. [12]


    After I've explained the types of internal economies, how do i 'analyse the link'
    ie. i say that as we increase production, there will be less cost using the LRAC diagram but how do i explain it in depth?


    Thanks.
    you need to refer to different types of internal economies of scale, if there is an extract apply it to the industry provided
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    Say how each internal economy leads to lower costs per unit for the firm.
 
 
 
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