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

Long-run costs and economies of scale — practice question

In the diagram, MRPL represents a firm’s marginal revenue product of labour curve, S shows its supply of labour curve, and MCL shows its marginal cost of labour curve. If profit maximisation is assumed, how many workers will the firm hire and what wage rate will it pay?

  • AN1; W3
  • BN1; W1
  • CN2; W2
  • DN2; W4

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