Economics 2281 · O Level · Firms' costs, revenue and objectives

Firms' costs, revenue and objectives — practice question

The diagram illustrates a firm’s long-run average total cost (ATC). What could bring about 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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