(a)[2]
Define what is meant by ‘economies of scale’.
(b)[3]
Briefly explain two reasons for diseconomies of scale.
Business 9609 · AS & A Level · Size of business
Size of business — practice question
Worked solution & mark scheme
This 5-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A sound definition is that economies of scale happen when production costs decrease as the scale of operations grows.” …
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