Edexcel A Level Economics B
Edexcel A Level Economics B 2.1 Business Growth and Competitive Advantage Exam Questions
Free Edexcel A Level Economics B exam questions on 2.1 Business Growth and Competitive Advantage, with mark schemes. Covers organic and external growth and sources of competitive advantage.
2.1 Business Growth and Competitive Advantage exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
StemUp mark scheme flashcards
A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 2.1 Business Growth and Competitive Advantage
2.1 asks how firms grow and how they gain an edge over rivals. Questions are usually applied to a firm in the extract.
What you need to know
- Organic growth Growing by increasing output, opening new outlets or developing new products using internal resources.
- External growth Mergers and takeovers, with horizontal, vertical and conglomerate integration.
- Economies of scale Internal and external economies lower average costs as a firm grows; diseconomies raise them.
- Competitive advantage Gained through lower costs, differentiation, branding, quality or innovation.
Common mistakes in 2.1 Business Growth and Competitive Advantage
- Mixing up horizontal and vertical integration.
- Assuming growth always lowers costs, ignoring diseconomies of scale.
- Not linking competitive advantage to price or non-price factors.
Try three 2.1 Business Growth and Competitive Advantage exam-style questions
1. Define organic growth. (2 marks)
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Growth from within the business (1), for example by increasing output or opening new outlets using its own resources (1).
2. Explain one source of competitive advantage for a supermarket. (2 marks)
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Economies of scale in purchasing allow it to buy stock more cheaply (1), so it can charge lower prices than rivals (1).
3. Explain one risk of a takeover. (2 marks)
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Different company cultures may clash (1), causing poor communication and lower productivity, so expected cost savings are not achieved (1).
2.1 Business Growth and Competitive Advantage FAQs
What does Edexcel A Level Economics B 2.1 cover?
Business growth, organic and external, economies of scale and competitive advantage.
Which paper tests Theme 2?
Paper 2, The wider economic environment and the global economy, with Theme 4, and Paper 3.
Do I need diagrams for 2.1?
Long run average cost curves showing economies and diseconomies of scale are useful.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
