Empirical evidence on the shape of the average cost curve across industries is mixed. A 1992 study, by Robidoux and Lester, found that 57 % of Canadian firms had economies of scale, 23 % had neither economies or diseconomies of scale, and 14 % experienced diseconomies of scale. Can you think of examples of firms or industries that might fall into each category? Why would a firm experience economies of scale? Why would a firm experience diseconomies of scale?
Length: A minimum of 400 words, not including references
Citations: At least one high-level scholarly or professional reference in APA format
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