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Explain one possible reason why average cost per unit may increase as the output level of a business increases.

If a firm has decreasing returns to scale their unit cost will increase as output increases. This is because the firm‘s costs are increasing as they increase their output, so the average (the total cost divi...
RT
Answered by Rachel T. • Economics tutor
10979 Views

are technological developments making perfect competition more realistic

A quality of Perfect competition is having perfect knowledge across the market between suppliers and producers, and PC is becoming more realistic as technology developes. This is because internet access enab...
MA
Answered by millie a. • Economics tutor
13314 Views

What is a Macroeconomic consequence of an increase government spending?

Increases in Government Expenditure will result in an increase in National Output (Y). This is due to government expenditure (G) being one of the variables which make-up Aggregate demand (AD= C + I + G + NX)...
HL
Answered by Harry L. • Economics tutor
3044 Views

Explain why a 'strong' pound might reduce the sales of steel in the UK.

A 'strong' pound means that UK steel that is exported abroad becomes more expensive. This leads to a contraction of demand for UK steel in foreign markets and as a result sales will fall. Conversely, a 'stro...
SM
Answered by Sinan M. • Economics tutor
2319 Views

Explain how a monopoly affects competition in a market

A monopoly is a type of market structure where by the market is dominated by one company. Due to the lack of participants in the market, the monopoly has the ability of charging high prices with low quantiti...
CM
Answered by Chloe M. • Economics tutor
2169 Views