A coach company grows from 15 to 40 vehicles and runs many more journeys each week. It replaces its smaller coaches with double-deck coaches that carry more passengers on each journey, and its bank now lends to it at a lower interest rate.
Explain one economy of scale the coach company may experience.
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.