A UK manufacturer sells 4,000 school desks each month to UK customers. It begins selling to schools overseas, and monthly sales rise to 7,000 desks. It makes the extra desks using the same factory and machinery.
Which benefit is the manufacturer most likely to gain from selling overseas?
A wider choice of desks for UK schools to buy
Fewer rival firms competing for its sales
A lower average cost of making each desk
A lower total cost of running its factory