Edexcel IGCSE Economics 1.2.3.b economies of scale
Practise economies-of-scale questions by explaining falling average costs in supermarkets, railways, platforms and mergers.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Define economies of scale as falling average costs when a firm expands.
- Apply purchasing, technical or marketing economies to supermarket, rail or platform data.
- Evaluate whether mergers or larger user bases are likely to reduce average costs.
1.2.3.b Internal and external economies of scale question 1
[Maximum number: 2]
What is meant by the term economies of scale?
A01 2 marks
Award 1 mark for reference to reduced average cost and 1 mark for reference to increased output
Average costs of production fall (1) as the level of output rises (1)
Accept any other appropriate response
(2)
Question
Number
State one example of a factor of production that can be
classified as land.
Mark
Answer
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