Two Economics Essays (1 Viewer)

[x.Exhaust.x]

Would anyone happen to have essays for these following questions, or any vital notes for these essay written questions?

1. Distinguish between internal and external economies of scale. What are the main sources of internal and external economies of scale? What might cause internal and external diseconomies of scale?

These are the exact points I wrote in my essay, and I got 8/20 for it (I still managed to get top 5 in the overall paper though, but this section ultimately screwed up my whole paper, otherwise, I would've been ranked 1.. )

Firstly, there are two types of economies of scale which can 'improve' efficiency: Internal Economies of Scale and External Economies of Scale. Internal Economies of Scale (refers to cost savings or cost advantages to the firm) are the factors that occur inside the firm's control and External Economies of Scale (results from reductions in costs) are the factors that occur outside the firm's direct control.

A firm can improve its efficiency by:

- Increased specialisation and divison of labour which may lead to further productivity and output
- Increased specialisation of capital (the produced means of production)
- Research and development and technological advancements, leading to new products and processes for a firm
- Better education and training, leading to better employees

The above were all internal economies of scale.

Another way a firm can improve its efficiency are:

- Lower resource costs bought by the firm
- Access to cheaper power and infrastructure
- Improve transport facilities

2. What are the four functions of an economic system? Contrast the way in which the market economy and the planned economy attempt to solve the economic problem. Use examples to illustrate your answer.

Thanks in advance.

 

[SimonLee13]

More Internal Economics of Scale
Lower input costs
Access to cheaper finance
Recycling of by products/waste products

More External Economics of Scale
Proximity to a skilled/trained/healthy workforce
Research and development due to government or industry
Access to lower finance due to growth in industry

The ones you listed are the main ones, the others are minor but prob would of helped. This is just off Riley