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

Long-run costs and economies of scale — practice question

(a)[3]

Identify three reasons why temporary workers in India are at a disadvantage when compared with permanent workers.

(b)[4]

Is the evidence provided sufficient to support the statement that ‘most manufacturing firms in India are small’?

(c)[3]

Distinguish between fixed cost and variable cost, and show how temporary workers and managers should be classified.

(d)[10]

Discuss whether paying low wages could be beneficial for India’s economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Temporary workers are paid half, or lower than, the rate paid to permanent workers.

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