A civil engineering consultancy expands from operating regionally to operating across the UK. Its borrowing before and after the expansion is shown in the table.
| Stage | Amount borrowed | Annual interest paid |
|---|---|---|
| Before expansion | £400,000 | £28,000 |
| After expansion | £1,200,000 | £60,000 |
Which economy of scale is demonstrated by these data?
Technical
Risk-bearing
Purchasing
Financial
83 exam-style questions on OCR GCSE Economics 2.6 Production, covering 2.6.1 Role of producers, 2.6.2 Importance of production and productivity, 2.6.3 Calculate cost, revenue, profit and loss, 2.6.4 Explain cost, revenue, profit and loss, 2.6.5 Cost, revenue and profit for producers, and 2.6.6 Economies of scale. Each one has a worked solution and a mark scheme showing where the marks go.