Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

The diagram illustrates a firm’s average total cost (ATC) in the long run. What would lead to the movement from $ATC_1$ to $ATC_2$?

  • Adifficulties in controlling the firm
  • Bexternal economies of scale
  • Cmanagerial economies of scale
  • Dtechnical economies of scale

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