All other things being equal, which one of the following is the most likely economic consequence of a manufacturing firm successfully implementing process innovation?
An increase in the marginal utility of the product to consumers.
A downward shift in the firm's average cost curve.
The immediate elimination of all structural barriers to entry.
A reduction in the division of labour on the production line.
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.