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Economics · May / June 2023 · Paper 11 · Question 16

2281Firms

The table shows the units of factors of production that a firm needs to employ for two different levels of output. What is the firm experiencing?

  1. Aconstant returns to scale
  2. Bdiseconomies of scale
  3. Cexternal diseconomies of scale
  4. Dexternal economies of scale

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Correct answer: B. diseconomies of scale

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