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Economics · Oct / Nov 2024 · Paper 12 · Question 13

2281Firms

The diagram shows the average total cost (ATC) for a firm, in the long run. What would cause the shift from ATC1 to ATC2?

  1. Adifficulties in controlling the firm
  2. Bexternal economies of scale
  3. Cmanagerial economies of scale
  4. Dtechnical economies of scale

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Correct answer: B. external economies of scale

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