Question 1: 2 marks The following conversation took place between two managers. Briey explain whether you agree or disagree with manager 2's reasoning: Manager 1: 'The only way we can increase the revenue we receive from selling our frozen pizzas is by reducing the price.' Manager 2: 'Reducing the price of a product never increases the amount of revenue you receive. if we want to increase revenue, we have to increase price.' Question 2: 4 marks Restaurant managers often make the observation that chefs and their assistants become less productive the more crowded the kitchen becomes. a. What do economists call this problem? What are the implications for the marginal product of labour for chefs and assistants? b. Do restaurant owners have a solution to this problem in the long run? Question 3: 4 marks What are economies of scale? Give 3 reasons which enable firms to experience economies of scale