DP Economics Questionbank

Explain two factors that might give rise to economies of scale for a firm.

Using a cost diagram, explain how membership in the common market may allow producers in South Sudan to gain economies of scale (paragraph [6]).

Explain two reasons why a monopoly may be considered desirable for an economy.

Define the term economies of scale indicated in bold in the text (paragraph [3]).

Using a costs diagram, explain how the expansion of the coconut industry could lead to economies of scale (paragraph [4]).

Using real-world examples, discuss the impact of large firms having significant market power.

Explain two economies of scale which may not be available to smaller farms (Text A, paragraph [2]).