Coffee Shop Cost Builder

1 min read

An interactive classroom activity for ECON 2103: Principles of Microeconomics. Students design coffee shops at several scales, compare each shop’s short-run average total cost curve, and combine the alternatives to reveal the long-run average cost envelope. The activity connects plant size, fixed and variable costs, economies of scale, minimum efficient scale, and diseconomies of scale.

Core concept Long-Run Average Cost and Economies of Scale

Game Materials