What would explain an increase in the size of an industry and a fall in the average output of the firms in an industry? A an advance in communication methods which reduce coordination problems within firms B an advance in technology which increases the cost advantage of capital-intensive methods of production C an increase in barriers to entry into the industry combined with an increase in barriers to exit from the industry D an increase in external economies of scale combined with a decrease in internal economies of scale
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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