Question 1(c)
[Maximum number: 2]
What is meant by the term economies of scale?
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.
How this is tested
- 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.