WEEK 4
Consumers and Business
The role of business in the economy
You will learn about:
You will learn to:
Examine economic issues
- Efficiency and the production process
• productivity
• internal and external economies of scale
• diseconomies of scale
You will learn to:
Examine economic issues
- compare and contrast the ways that different economies deal with specific problems or issues
- identify bias in media items on economic issues affecting the local, state and national economies
Drivers of Globalisation
Economies of Scale
LEARNING INTENTION:
Using the notes from Riley’s text (Ch. 5) go to p.89 and read about internal and external economies of scale.
* Answer the questions on p. 92:
Using the notes from Riley’s text (Ch. 5) go to p.89 and read about internal and external economies of scale.
* Answer the questions on p. 92:
1. Define an economy of scale. Distinguish between an economy and a diseconomy of scale.
2. Why do economies and diseconomies of scale occur in the long run? Draw a diagram of the long run average cost curve to illustrate the relationship between output and average cost. Mark in the point of technical optimum, and economies and diseconomies of scale on the diagram.
3. Explain the difference between internal economies of scale and internal diseconomies of scale. What are some possible causes of internal economies and diseconomies of scale?
4. Explain the difference between external economies of scale and external diseconomies of scale. What are some possible causes of each? Draw a diagram to illustrate how external economies and diseconomies of scale can arise in production.
5. Explain the difference between increasing, constant and decreasing returns to scale.
- Be able to define, explain and calculate using internal and external economies of scale.
Using the notes from Riley’s text (Ch. 5) go to p.89 and read about internal and external economies of scale.
* Answer the questions on p. 92:
Using the notes from Riley’s text (Ch. 5) go to p.89 and read about internal and external economies of scale.
* Answer the questions on p. 92:
1. Define an economy of scale. Distinguish between an economy and a diseconomy of scale.
2. Why do economies and diseconomies of scale occur in the long run? Draw a diagram of the long run average cost curve to illustrate the relationship between output and average cost. Mark in the point of technical optimum, and economies and diseconomies of scale on the diagram.
3. Explain the difference between internal economies of scale and internal diseconomies of scale. What are some possible causes of internal economies and diseconomies of scale?
4. Explain the difference between external economies of scale and external diseconomies of scale. What are some possible causes of each? Draw a diagram to illustrate how external economies and diseconomies of scale can arise in production.
5. Explain the difference between increasing, constant and decreasing returns to scale.
| 2020_y11_chapter_5_cd.pdf |
Check your responses in the PPT here: