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1.4 Production, costs and revenue

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Question 91

Diseconomies of scale are most likely to occur when:

A

larger firms are able to negotiate lower interest rates on financial loans.

B

communication and coordination across multiple layers of management become more complex as the firm expands.

C

workers specialise in specific tasks, leading to gains in productive efficiency.

D

advertising and marketing costs are spread over a larger volume of sales.

Markscheme

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue

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.

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