…producing cars, thinking costs.

As we start to delve into the theories of costs and supply, use your ‘economics toolkit’ to think about what’s going on in ‘real world’ examples.

Have a look at the business of car production in the developed world.

VW cutting costs in the US

Porsche cutting costs in Germany

Think about which types of costs are being mentioned and the likely impact upon the relevant market supply curve. This will all come in handy when thinking about bringing supply and demand together…which tends to be a fave focus for an exam question in the May/June assessment period.

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