This blog is used to set lesson engagement activities (bell work) for Mr Clarke's business studies students.
Thursday 3 February 2011
the BIG question
What would you expect to happen to a business's average costs (average costs = total costs/number of units produced) as the business gets bigger? Explain your answer.
If the business was to get bigger, than the average cost would increase. This is because the business will have more to pay for. This then leads to the business having to produce more units so that they can earn a bigger profit.
AWIAHA if the business were to get bigger then one would assume that the costs would increase. the average costs would rise because the prices of there other products and services would be more expensive in order this results to the average cost increasing in total.
As the business gets larger the average costs will decrease as the machinery and resources can be brought in bulk etc bringing the prices down. Although lots more things will have the be brought they will also produce more units dropping the average costs. Jake Lewis!!!!!!!!!!!!!!!!!!
As the business gets bigger the total costs will start to get larger this also means the the number of units being produced will also have to be increased. As the business gets bigger the companies average costs will therefore rise.
The average costs should rise proportionally to the company's growth as as the number of units produced increases, the total costs will increase therefore the average costs will rise in proportion to the growth of the company. Katie
Becky: The average costs will go up because the total costs will rise because they have to buy more materials in order to make more products so the number of units produced will also rise
as the business gets bigger the average costs would be expected to go up because their total costs would be bigger as they need to hire more employees and more space to produce goods etc and the number of units being produced would also increase
The average costs would increase by number because they would be selling more. However, they would be selling more products which would increase their profit. The total cash flow would increase.
As the business grows it is likely that the total cost will increase as will the number of units produced and therefore bought. The average cost would rise. Dani
If the business was to get bigger, than the average cost would increase. This is because the business will have more to pay for. This then leads to the business having to produce more units so that they can earn a bigger profit.
ReplyDeleteBrad
AWIAHA
ReplyDeleteif the business were to get bigger then one would assume that the costs would increase. the average costs would rise because the prices of there other products and services would be more expensive in order this results to the average cost increasing in total.
chloe
ReplyDeleteif the business was to get bigger then the average costs will increase as it will cost more to make these products.
The business's average costs would go up because the total cost will go up, and the number of units produced will increase as the business grows.
ReplyDeleteMarcus
As the business gets larger the average costs will decrease as the machinery and resources can be brought in bulk etc bringing the prices down. Although lots more things will have the be brought they will also produce more units dropping the average costs.
ReplyDeleteJake Lewis!!!!!!!!!!!!!!!!!!
As the business gets bigger the total costs will start to get larger this also means the the number of units being produced will also have to be increased. As the business gets bigger the companies average costs will therefore rise.
ReplyDeleteJem.
The average costs should rise proportionally to the company's growth as as the number of units produced increases, the total costs will increase therefore the average costs will rise in proportion to the growth of the company.
ReplyDeleteKatie
Becky:
ReplyDeleteThe average costs will go up because the total costs will rise because they have to buy more materials in order to make more products so the number of units produced will also rise
As the business grows, the costs will rise with the increase in components bought to create the increased amount of products.
ReplyDeletethe costs will increase but the income will also increase to keep it level if not higher...more is produced and as the company is bigger more is sold.
ReplyDeletejack.
Neil
ReplyDeleteThat would increase as the more stores, the products need to be produced, also demand will cause an increase in production, increasing average costs
as the business gets bigger the average costs would be expected to go up because their total costs would be bigger as they need to hire more employees and more space to produce goods etc and the number of units being produced would also increase
ReplyDeletedom
as the business grows , the costs and the amount of income will rise
ReplyDeleteSLADE
the average cost will rise because the total cost will go up because they have to buy more materials to make more products.
ReplyDeleteEllie Jarvis
I'lll Be Back. With weapons!
ReplyDeleteTerminator
The average costs would increase by number because they would be selling more. However, they would be selling more products which would increase their profit. The total cash flow would increase.
ReplyDeleteLizzieee
As the business grows it is likely that the total cost will increase as will the number of units produced and therefore bought. The average cost would rise.
ReplyDeleteDani
When Chuck Norris does press ups he doesn't push himself up, he pushes the whole world down.
ReplyDelete