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

Long-run costs and economies of scale — practice question

In 2015, the price of oil fell sharply. As a result, 65 000 jobs were lost in the North Sea oil industry. How would this be shown on a labour market diagram for oil workers?

  • Aa movement down the marginal revenue product curve
  • Ba shift towards the horizontal axis of the marginal cost curve
  • Ca shift towards the origin of the marginal revenue product curve
  • Da shift towards the vertical axis of the average cost curve

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