9708 A2 Economics

So, I'm writing A2 economics CIE on 17 May 2018, I'd love to get some help/advice from previous students or current students. I find this to be my most difficult subject (esp MCQ), any help would be much appreciated x

My favoured site

https://www.economicshelp.org/economics-a-z/
https://www.economicshelp.org/shop/
https://www.economicshelp.org/shop/cie-a-level-economics-revision-guide/

Thank you! But I live in Africa, so buying those two books would not be possible (especially because my exam is in THIRTEEN DAYS) and there is now way delivery will reach in that time, but the first one hopefully will help

Diminishing returns and Economies of Scale

Marginal Cost and Diminishing returns

and
Marginal cost and economies of scale?

As firms increase output by increasing the variable factor (labour), productive efficiency increases due to specialisation - labour economy of scale.

Eventually though, capital becomes overcrowded by labour leading to a drop in productive effiency, so each new worker diminishes marginal returns (the additional output from each new worker falls) - diseconomy of scale.



Each additional input leads to a smaller and smaller increase in output, so total cost is rising faster that total revenue leading to higher marginal costs.



Increases in the quantity of labour and/or capital increase output through specialisation/use of indivisible capital (where a machine previously operating at, for example, 50 units per day can increase output to 100 units per day with having to buy a new one) - economies of scale - so the marginal cost of each output falls because total revenue is rising faster than total costs.

Hope I am being clear.

As firms increase output by increasing the variable factor (labour), productive efficiency increases due to specialisation - labour economy of scale.

Eventually though, capital becomes overcrowded by labour leading to a drop in productive effiency, so each new worker diminishes marginal returns (the additional output from each new worker falls) - diseconomy of scale.



Each additional input leads to a smaller and smaller increase in output, so total cost is rising faster that total revenue leading to higher marginal costs.



Increases in the quantity of labour and/or capital increase output through specialisation/use of indivisible capital (where a machine previously operating at, for example, 50 units per day can increase output to 100 units per day with having to buy a new one) - economies of scale - so the marginal cost of each output falls because total revenue is rising faster than total costs.

Hope I am being clear.

Would you know the graphs I would use to explain these links?

https://qph.fs.quoracdn.net/main-qimg-fa3af3228dd725b3a755400ec83c3d23

Short run average cost falls due to specialisation the rises due to overcrowding. Increase the amount of capital then leads to a fall in long run average cost but eventually increases due to diseconomies.


https://i.pinimg.com/originals/4a/33/c1/4a33c1f0ae5f1c6e205c72e0965ce3f1.jpg

As before, specialisation causes MC to fall, then to rise due to overcrowding.

Thank you!

How was the exam yesterday guys

I think it was really good, how was it for you?

yeah, i also felt like it was much easier than past years. which questions did you do?

I did questions 5 and 7, you did variant 2 right?

How did you guys answer question 5 for 42?

was that the actual and potential growth and the cost and benefits of econ growth?

Yeah, it is. I worry I haven't written enough to score well in that question

I wrote that actual growth is basically short run economic growth, explained that with diagrams and gave a bunch of causes

potential growth is basically long run economic growth and did the same thing to explain. I wrote around 2 pages for 5a and my handwriting is kinda small so I hope I wrote enough.

For part b) costs and benefits of growth, I listed the benefits in one paragraph and costs in other, and then concluded giving my opinion. I also wrote 2 pages for this.