Economics 9708 · AS & A Level · 7.5

7.5 — practice question

When a firm is subject to external diseconomies of scale and decreasing returns to scale, in what way would these be represented on a cost curve diagram?

  • Ashift in long-run average cost curve: downward; movement along long-run average cost curve: downward
  • Bshift in long-run average cost curve: downward; movement along long-run average cost curve: upward
  • Cshift in long-run average cost curve: upward; movement along long-run average cost curve: downward
  • Dshift in long-run average cost curve: upward; movement along long-run average cost curve: upward

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