00:01
So in this problem, we know that there are large economies of scale or significant economies of scale.
00:07
And what economies of scale means is that, so this is economies of scale.
00:15
So what this means is that as quantity goes up, cost per unit goes down.
00:21
So marginal cost goes down.
00:25
And we know that at the bottom of the long run average cost curve, so so this area over here, by the way, represents economies of scale.
00:38
This area over here is economies of scale.
00:41
And this area to the right of this green dot represents dis -economies of scale.
00:46
Dis -economies of scale is the opposite of economies of scale, whereas the quantity goes up, the marginal cost goes up...