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Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 5

9708Types of cost, revenue and profit, short-run and long-run production

The diagrams show four average cost curves. Which diagram illustrates diseconomies of scale?

  1. ADiagram A: U-shaped SRAC curve
  2. BDiagram B: upward-sloping SRAC curve
  3. CDiagram C: U-shaped LRAC curve
  4. DDiagram D: downward-sloping LRAC curve

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Correct answer: C. Diagram C: U-shaped LRAC curve

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