ECO204 Week3 D2

 Long-Run Average Cost and Economies of Scale [WLOs: 3, 4] [CLOs: 1, 2, 3]      

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.)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?

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