{
  "id": "long-run-average-cost",
  "name": "Long-run average cost (economies of scale)",
  "unit": "micro",
  "unitName": "Unit 2 · Microeconomics",
  "topic": "Costs & revenues (HL)",
  "hl": true,
  "description": "The LRAC curve falls with economies of scale, may be flat with constant returns to scale, and rises with diseconomies of scale. The lowest output at which LRAC is minimised is the minimum efficient scale.",
  "keywords": [
    "economies of scale",
    "diseconomies of scale",
    "constant returns to scale",
    "LRAC",
    "minimum efficient scale",
    "MES",
    "envelope curve",
    "SRAC"
  ],
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  "previewUrl": "https://graphs.lectere.com/thumbs/long-run-average-cost.svg",
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        {
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          "label": "With constant returns to scale"
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    {
      "key": "regions",
      "label": "Label economies / diseconomies of scale",
      "default": true,
      "type": "boolean"
    },
    {
      "key": "mes",
      "label": "Mark minimum efficient scale",
      "default": true,
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    },
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      "id": "main",
      "title": null,
      "xLabel": "Output",
      "yLabel": "Average costs",
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        0,
        10
      ],
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        0,
        10
      ],
      "axisKeys": {
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      }
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      "panel": "main"
    },
    {
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      "default": "Output",
      "hint": "Horizontal axis",
      "panel": "main"
    },
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      "hint": "Arrow / line",
      "panel": "main"
    },
    {
      "key": "main.region1",
      "default": "diseconomies of scale",
      "hint": "Arrow / line",
      "panel": "main"
    },
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      "hint": "Point",
      "panel": "main"
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      "key": "main.mes:x",
      "default": "Q_{MES}",
      "hint": "Horizontal-axis value",
      "panel": "main"
    }
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    },
    {
      "key": "main.mes",
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  "stats": null,
  "example": {
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    "params": {
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      "regions": true,
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      "srac": false
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}