I’m in my economics class and half of what I’m learning makes no sense. Part of it is the way things are explained—I have ADD, so comprehension is difficult for me.
No matter how many time I read I just can’t understand it.
In: 4
Heres what made it make sense to me: Say you double the amount of employees you hire.
If the amount of product you make more than doubles, you’re experiencing economies of scale because as you “scale up,” your additional product outpaces you additional costs.
If the amount of product you make less than doubles, you’re experiencing diseconomies of scale because as you scale up your input, workers, your product doesn’t scale up as quickly.
Hope this helped.
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