Module 4/ Eco

After viewing the clip “Broke“ from The Office, what was Ryan referring to when he said, “Over time with enough volume, we become profitable.” What short run costs was he focused on, and what was he ignoring?

Given what you have learned so far about economies and diseconomies of scale, discuss the ramifications involved as a firm grows bigger. Use examples from beyond your readings to describe firms experiencing either economies or diseconomies of scale and what this implies for competition and for the customers of these firms.