Question 4. (a) Explain the concept of economies of scale. Explain how an organisation such as Starbucks would realise economies of scale in its business operations (use examples to support your answer)(b) Wages are lower in the Middle East than in Australia. Explain how this fact will make Starbucks average cost and marginal cost curves different in its Middle East cafés compared to its Australian cafes

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 4. (a) Explain the concept of economies of scale. Explain how an organisation such as Starbucks would realise economies of scale in its business operations (use examples to support your answer)(b) Wages are lower in the Middle East than in Australia. Explain how this fact will make Starbucks average cost and marginal cost curves different in its Middle East cafés compared to its Australian cafes 

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