A cosmetics producer increases its output. Its spending on a national advertising campaign changes very little, so the advertising cost per item falls.
Which type of economy of scale does the cosmetics producer benefit from?
Purchasing
Marketing
Technical
Risk-bearing
83 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.