The rapid concentration of high-capacity data centers in a specific metropolitan district increases. This industry-wide expansion leads to severe congestion on the local electrical grid, triggering peak-demand surcharges, and drives up the market rate for specialized cooling engineers. Consequently, individual data centers in the district experience a rise in their average operating costs.
This rise in average costs is best described as resulting from
an increase in internal managerial diseconomies of scale.
the presence of external diseconomies of scale.
a reduction in internal technical economies of scale.
the existence of external economies of scale.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.