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3.1.1 Sizes and types of firms
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Why firms grow

Why firms grow

A firm may grow by increasing its scale of output. Economies of scale occur when long-run average cost falls as output increases, often because fixed costs are spread across more units.

3.1.1 Sizes and types of firms Lesson

  1. A Level
  2. /Economics
  3. /3.1.1 Sizes and types of firms

Step-by-step lessons covering Edexcel A A Level Economics 3.1.1 Sizes and types of firms for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.