Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

Labour is the sole variable factor for a profit-maximising firm that is a price taker in the labour market. What is the basis from which the firm’s demand curve for labour is derived?

  • Aits marginal factor cost curve
  • Bits marginal revenue curve
  • Cits marginal revenue product of labour curve
  • Dits short-run marginal cost curve

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