ECON101: Principles of Microeconomics

To finish this unit, watch this video to review the essential economic concept of economies of scale. By the end, you should be well-prepared to address the question posed: "Why are people and economic activity concentrated in cities rather than distributed evenly across a country?"

We started this unit by asking these questions:

• What should be produced?
• How should it be produced? (considering the amount of each input used)
• How much should be produced?
• Where should it be produced?

As previously mentioned, the answers to these questions depend on several factors, including the time frame considered, the costs of the firm, and the market structure within which the firm operates. In this unit, we have delved into the first two aspects. In the upcoming unit, we explore the various market structures where a firm can conduct its business.