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
- (a)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[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] (Correct option is D)
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