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