Principles of Microeconomics / Unit 6 MIC 0540 short lesson, about 20 seconds
Technology Shifts the Scale
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The idea
A new technology can enlarge minimum efficient scale, favoring big firms, or shrink it, letting small firms compete. The shape of the industry follows the shape of its cost curve.
In practice
The assembly line enlarged the efficient car plant; small gas turbines shrank the efficient power plant.
Where people slip
Which way information technology pushes is contested, and the course reports it as an open question.
Your place on the trail
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Unlocks
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