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In his study of the effect of size on group dynamics, Simmel found that
Long-run Average Total Cost
The average cost per unit of output produced over a period during which all inputs, including capital, are variable.
Diseconomies of Scale
The situation in which a business experiences an increase in average costs per unit when output is increased beyond a certain point.
Economies of Scale
The economic benefits gained by companies because of their large scale of operation, which typically results in a lower cost per unit of output as the scale increases.
Average Fixed Costs
The total fixed costs associated with production (costs that do not change with output) divided by the quantity of output produced.
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