Economics 9708 · AS & A Level · 11.6

11.6 — practice question

A business based in country S transferred its current capital equipment to a bigger factory in country T. It also added further identical equipment and expanded its workforce. On the basis of the evidence given, what must be true?

  • AThe firm is operating in the long run.
  • BThe firm is operating in the very long run.
  • CThe firm’s division of labour has increased.
  • DThe firm’s supply curve has shifted to the left.

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