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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
10974 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
13308 Views

Evaluate the view that fiscal policy is the most effective way of achieving long-term economic growth

Definition of:Long-term economic growth - the sustained increase in output in an economy measured by an increase in real GDP over a period of timeFiscal policy - it is the use of government expenditure and t...
SA
9598 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
3042 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
2317 Views