A large manufacturer achieves purchasing economies of scale, but coordination problems develop between its factories. Which outcome is most likely?
Average costs must continue falling at every output
Total revenue becomes equal to total cost
Bulk-buying savings may be partly offset by higher management costs
Productivity cannot be affected by firm size
30 exam-style questions on OCR GCSE Economics 2.6 Production, covering 2.6.1 Role of producers, 2.6.2 Importance of production and productivity, 2.6.3 Calculate cost, revenue, profit and loss, 2.6.4 Explain cost, revenue, profit and loss, 2.6.5 Cost, revenue and profit for producers, and 2.6.6 Economies of scale. Each one has a worked solution and a mark scheme showing where the marks go.