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Paper 2Structured Questions1 marks
A manufacturing firm has been expanding its production capacity over the past few years.
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Impact of Scale on Production Costs
As the firm increased its production, it noticed a decrease in average costs due to bulk purchasing and improved labor specialization. However, after reaching a certain production level, the firm began to experience delays in communication and management issues.
- a[1]
State one internal economy of scale that the firm experienced.
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