(a)[2]
Explain what zero-sum means in game theory.
(b)[5]
Use the information to explain how external economies of scale arise. Show, with the help of a diagram, how this would change a firm’s average costs.
(c)[6]
Demand for the output of a geographically concentrated industry falls. Analyse the economic implications of this for the area in which the industry is based.
(d)[7]
Consider how the negative externalities arising from concentrated industrial production might be reduced.