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

Long-run costs and economies of scale — practice question

A firm experiences a demand curve for its product that slopes downward. If labour is the only variable factor input, in what way does the firm obtain its demand curve for labour?

  • Afrom the current price of output and the money wage rate of labour
  • Bfrom the marginal factor cost of labour
  • Cfrom the schedules of the marginal physical product of labour and of marginal revenue
  • Dfrom the schedules of the marginal physical product of labour and the money wage rate

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