An independent glassblowing studio in Cornwall has seen its monthly gas bills for heating its melting furnaces rise from £2,500 to £11,000. Unlike large industrial glass manufacturers, small-scale artisanal studios lack the capital to invest in energy-efficient electric furnaces or the negotiating leverage to secure long-term, fixed-price energy contracts.
Evaluate the microeconomic effects of rising energy costs on independent artisanal manufacturers or an industry of your choice.
19 exam-style questions on Edexcel A A Level Economics 3.3.2 Costs. Each one has a worked solution and a mark scheme showing where the marks go.