Lesson 23: Bigger is Better: The Economics of Mass Production

The students examine a series of visuals that explain economies of scale. Volunteers are asked to do calculations regarding levels of production. The character of the United States economy changed late in the nineteenth century. Manufacturing, rather than agriculture, became its central feature. This lesson discusses the characteristics of mass production and demonstrates that increasing output lowers the cost of producing most goods.

Concepts:

Capital, Costs of production, Division of labor, Economies of scale, Financial capital, Fixed costs, Mass production, Variable costs
National Content Standards in Economics:
  • Standard #15: Economic Growth