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

Long-run costs and economies of scale — practice question

The diagram illustrates a firm’s original marginal revenue product of labour curve (MRP1). What might lead this curve to move to MRP2?

  • Aan increase in labour productivity
  • Ban increase in the wage rate
  • Ca reduction in labour hours
  • Da reduction in the price of the firm’s product

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