Pages in this set

Page 1

Preview of page 1
Harry Bindloss

The classification between SR, LR and VLR are to do with the four FOP's

In the short run (SR) ­ One of your FOP's is fixed. E.g. Kebab Van ­ Labour
In the long run (LR) ­ Labour is now variable
In the very long…

Page 2

Preview of page 2
Harry Bindloss

Economies of scale: These are the benefits of producing on a large scale resulting in lower
unit costs. If nations specialise in what they are best at not only will output rise due to
comparative advantage but unit costs will fall due to economies of scale. Therefore prices…


No comments have yet been made

Similar Economics resources:

See all Economics resources »