An electric vehicle (EV) manufacturer experiences a significant decrease in its long-run average cost of production as its output expands. This is most likely to be the result of:
a reduction in external economies of scale within the green energy sector.
a decrease in productive efficiency due to lower labour productivity.
greater opportunities to exploit internal economies of scale.
total production costs rising at a faster percentage rate than total output.
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.