Costs of Production and Economies of Scale · CSEC Economics

18 past-paper questions on Costs of Production and Economies of Scale, part of Section 2: Production, Economic Resources and Resource Allocation, from every CSEC Economics paper on Quelpr.

1. 3(d)6 marks· CSEC Economics · May/June 2007 · Paper 2If the quantity of capital available for production in your country increases but labour remains fixed, would the law of diminishing returns still operate? Explain your answer.
2. 8(a)2 marks· CSEC Economics · May/June 2009 · Paper 2Define the term 'economies of scale'.
3. 8(b)5 marks· CSEC Economics · May/June 2009 · Paper 2With the aid of a diagram, explain the relationship between marginal cost and average cost curves.
4. 8(b)3 marks· CSEC Economics · May/June 2011 · Paper 2List THREE benefits of large-scale production.
5. 5(a)4 marks· CSEC Economics · May/June 2012 · Paper 2Differentiate between 'fixed' and 'variable' costs. Give ONE example of EACH type of cost.
6. 5(c)(i)4 marks· CSEC Economics · May/June 2012 · Paper 2Distinguish between 'economies of scale' and 'diseconomies of scale'.
7. 5(c)(ii)4 marks· CSEC Economics · May/June 2012 · Paper 2Draw a well-labelled diagram showing the regions of economies of scale and diseconomies of scale.
8. 7(a)4 marks· CSEC Economics · May/June 2013 · Paper 2Identify which short-run cost curve each letter (A, B, C, and D) corresponds to in Figure 1 from the provided options: AFC, MC, AVC, and ATC.
9. 7(d)5 marks· CSEC Economics · May/June 2013 · Paper 2Explain TWO examples of fixed costs encountered by a small supermarket owner.
10. 2(c)6 marks· CSEC Economics · May/June 2014 · Paper 2Explain TWO types of economies of scale gained when moving from operating a small food stall to a big restaurant.
11. 2(d)(i)2 marks· CSEC Economics · May/June 2014 · Paper 2Calculate the average total cost (ATC) for an output level of 3 units.
12. 2(d)(ii)2 marks· CSEC Economics · May/June 2014 · Paper 2Calculate the marginal cost for the 4th unit of output.
13. 1(a)2 marks· CSEC Economics · May/June 2016 · Paper 2Define the term 'diseconomies of scale'.
14. 1(b)1 mark· CSEC Economics · May/June 2016 · Paper 2Identify the time period in which 'economies of scale' occur.
15. 1(c)2 marks· CSEC Economics · May/June 2016 · Paper 2Identify TWO types of diseconomies of scale.
16. 1(e)4 marks· CSEC Economics · May/June 2016 · Paper 2Identify TWO 'fixed costs' and TWO 'variable costs' associated with setting up a hairdressing salon or a barber shop.
17. 2(a)4 marks· CSEC Economics · May/June 2017 · Paper 2Distinguish between the terms 'economies of scale' and 'diseconomies of scale'.
18. 2(b)1 mark· CSEC Economics · May/June 2017 · Paper 2State ONE example of diseconomies of scale.