The expansion of the biotechnology and biomedical sector around Cambridge led to the establishment of specialized laboratory supply companies and clinical trial services in the area. As a result, individual biotech start-ups experienced a fall in their average cost of research and development. This is an example of
a managerial economy of scale.
an external economy of scale.
a purchasing economy of scale.
a financial economy 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.