Economics 0455 · IGCSE · Firms and production

Firms and production — practice question

The table sets out the quantities of factors of production that a firm must use at two different output levels. land 4, labour 3, capital 5, output 20 land 8, labour 6, capital 10, output 40 What is happening to the firm?

  • Aconstant returns to scale
  • Beconomies of scale
  • Cexternal diseconomies of scale
  • Dexternal economies of scale

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