Economics · May / June 2025 · Paper 12 · Question 11

The diagram shows the average total cost curve (ATC) for a firm after a merger. Why is the movement from X to Y likely to result from this merger?

1. AConsumer demand is rising.
2. BMarketing economies of scale occur at higher levels of output.
3. CThe firm faces problems of co-ordination between departments.
4. DThe firm is negotiating discounts through bulk buying.

As printed in the paper