Economics 9708 · AS & A Level · 7.5

7.5 — practice question

(a)[3]

Explain what internal economies of scale mean, using an example from the information.

(b)[3]

Consider what minimum efficient scale means and the extent to which the data in Table 1.1 indicate that this has been achieved.

(c)[6]

Analyse, with the aid of a diagram, the likely effect of the switch to EV on the labour market for workers producing ICE in southern Germany.

(d)[8]

Evaluate the likely macroeconomic effects of the switch to EV on Saudi Arabia and Singapore.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Internal economies of scale refer to a reduction in long run average costs (LRAC) as the firm increases its output.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI