Economies of Scale : How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve?

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Economies of Scale

Read David Trainer’s Sysco Feasts on Economies of Scale for Strong Competitive Advantage (Links to an external site.) as well as Chapter 8 of the textbook.

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Based on this information, respond to the following:

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve?

Describe economies of scale and diseconomies of scale.

What are the determinants of economies of scale and diseconomies of scale, respectively?

Using a real-world company (other than Sysco), explain the causes of economies of scale for your company.

Explain how economies of scale help your company compete in its industry.