3.2.1 (EEOS)

Question 1

External Economies of scale

Answer 1

The benefits any business in an industry might enjoy as the industry grows

Question 2

3 external Economies of scale

Answer 2

• Labour
• Infrastructure
• Supplies

Question 3

Labour external Economies of scale

Local colleges/uni may provide what?

what maybe reduced as a result?

Answer 3

• As industry grow there becomes a greater pool of workers equipped with appropriate skills

-Locals colleges/unis start to provide courses aimed at the needs of the local industry.

• Training costs maybe reduced

Question 4

Infrastructure external economies of scale

• go to weebly slides to refresh mind

Examples

Answer 4

government may support larger growing industries by building better infrastructure or helping to fund research and development.

• this is only if the industry is large enough to be important for the economy

e.g ports, social activites, education

examples
ports - this is to help businesses import goods

Social - building better stadiums for fans/better transport for them

education - better buildings/ learning for kids

Question 5

Supplies external ecnomies of scales

Answer 5

?