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1.4 Production, costs and revenue

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Question 9

Which of the following is the most likely disadvantage a business might experience as a result of significantly expanding its scale of production?

A

A reduction in unit costs due to bulk-purchasing agreements

B

Communication breakdowns and a loss of control across different departments

C

Increased opportunities for managerial specialization

D

Access to preferential interest rates from lenders

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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