Build business-economics exam fluency across production, productivity, costs, competition, labour markets and intervention using real Edexcel contexts.
What is meant by the term economies of scale?
State one example of a factor of production that can be classified as land.
Define the term monopoly.
In 2015, the school-leaving age in England was raised from 16 to 18.
Explain one possible effect on the supply of labour of the school-leaving age being raised.
Bupa is an international firm that provides healthcare products to 32 million customers in 190 countries. The initial purpose of the firm was to provide health insurance. It has grown by offering a wider range of services. These include retirement homes for the elderly, eye care, hospital treatment, dental work and travel insurance.
With reference to the data above and your knowledge of economics, analyse why Bupa may have decided to operate in a wider range of markets.
When a firm increased its prices, many consumers stopped buying its products.
What is meant by the term productivity?
A firm has total fixed costs of € 37000 per month and variable costs of € 170 per unit. It produces 650 units per month.
Calculate the total costs per month for the firm. You are advised to show your working.
In April 2023, the Competition and Markets Authority (CMA), the competition regulator in the UK, prevented the purchase of Activision by Microsoft. Microsoft already controlled about 60-70% of the market for online video gaming.
Explain one reason why the CMA may have made this decision.
As a result of changes in consumer tastes, the demand for furniture made of wood is expected to increase by about 5% in the next five years. Woodcutters are employed to cut down trees to produce the wood required to make furniture.
With reference to the data above and your knowledge of economics, analyse how an increase in demand for furniture made of wood may affect the demand for woodcutters.
Which one of the following is a factor of production?
Land
Profit
Wages
Manufacturing
A firm has total fixed costs of $40000 per month and variable costs of $ 150 per unit. If it produces 1,000 units, what are the total costs per month for the firm?
$ 190000
$ 150000
$ 41150
$ 40150
Define the term tertiary sector.
Figure 1 shows the costs of production per month for a firm making 2,000 units.
Figure 1
Calculate the average cost per unit for the firm when it makes 2,000 units. You are advised to show your working.
Which one of the following is a situation when firms in a growing industry all benefit from lower average costs?
Internal economies of scale
External economies of scale
Diseconomies of scale
Technical economies of scale
State one disadvantage to firms of increased competition.
A firm has total fixed costs of $ 75000 per month and variable costs of $ 525 per unit. It produces 1350 units per month.
Calculate the total costs per month for the firm. You are advised to show your working.
Define the term takeover.
With reference to the data above and your knowledge of economics, assess whether an increase in the number of people with skills and qualifications will always lead to an increase in the supply of teachers.