The difference between average and marginal cost is that marginal cost is the change in total cost when a new unit is produced, whereas average cost is total cost divided by the number of goods ...

Companies can achieve economies of scale by increasing production while lowering per-unit production costs. Costs can be both fixed and variable. Economies of scale are cost advantages that ...

Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm. With this principle ...