aqa economics; economies of scale

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    pls help. Finding it hard to see how each example relates to the theory.
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    (Original post by sahil19)
    pls help. Finding it hard to see how each example relates to the theory.
    What exactly do you need help with? What examples? What theories?
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    Businesses and firms benefit from Economies of scale i.e bulk buying/finance

    Bigger firms have access to higher credit because banks trust them to finance their deals as they are aware they will pay the loans back and are efficient. The firms can then use the loans to finance products/advertise
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    (Original post by kas9)
    What exactly do you need help with? What examples? What theories?
    in terms of the exam and this subject, what is the q likely to be on? a data response or a multichoice?
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    (Original post by sahil19)
    in terms of the exam and this subject, what is the q likely to be on? a data response or a multichoice?
    mainly multi-choice but you can use economies of scale in evaluation in data response
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    (Original post by samantham999)
    mainly multi-choice but you can use economies of scale in evaluation in data response
    there are just so many examples, I love econ and this is the first subject that has fazed me. Do we need to know all of them?
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    (Original post by sahil19)
    there are just so many examples, I love econ and this is the first subject that has fazed me. Do we need to know all of them?
    I know its good, learn finance i.e they get lower interest rates on their loans/bulk buying/risk bearing (can spread risk through investors) /specialisation

    Use these! and then explain them and link whenever you can.
    p.s don't forget to mention the obvious point that all of these attempt to lower AC as output increases
 
 
 
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