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Economics · Oct / Nov 2021 · Paper 13 · Question 14

2281Firms

The table shows output and total cost of a firm with four production methods, A–D. Which method causes diseconomies of scale as the firm expands production from 1000 to 3000 units?

  1. A8 000 / 10 000 / 12 000
  2. B8 000 / 14 000 / 27 000
  3. C10 000 / 16 000 / 21 000
  4. D10 000 / 20 000 / 30 000

As printed in the paper

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Correct answer: B. 8 000 / 14 000 / 27 000

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