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Aaron has been taking a mild amphetamine for the past four months to help him cope with being a full-time student while holding down a full-time job.Now that his classes have ended he wants to stop taking the amphetamine,but each time he tries to skip the medication he starts sweating and he develops tremors.It appears that Aaron has
Increasing Returns To Scale
See Economies of scale.
Economies Of Scale
Exist when average costs fall as output increases.
Diseconomies Of Scale
Exist when average costs rise with output.
Marginal Costs
The cost associated with producing one additional unit of a product, useful for decision-making on production levels and pricing.
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