Want a ‘fix’ to illustrate economies of scale?  Here’s a numerical question

You may have seen my post giving you an example of introducing the concept of diseconomies of scale on Sunday where you ask a large team of students to draw an image of Steve Jobs. This next one is nothing like that!Instead, here's another example of a future-proofed activity that uses a bit of number work to make its point. I'm not saying that you'll get a question like this in the new specification (but who knows?) but this does illustrate the concept of economies of scale using numbers.

The Nut&BoltFix example asks students to work through a numerical exercise showing the relative cost of wooden crates as a fictitious nut and bolt supplier increases its output. Ultimately, it shows how there is a reduced cost in making larger crates.

The resource is a Powerpoint show that you can use to illustrate the case study in class with the final slide acting as a printable worksheet for students. This activity should last about 5 minutes.

Click here to download the 'Nuts&BoltFix Economies of Scale activity'

Don't forget, we are running special new CPD events in the use of Quantitative Methods in Economics to help teachers prepare for the increased numerical content with the new specifications when they arrive in September 2015.