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Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 7

9708Efficiency and market failure

A firm benefits from dynamic efficiency in the long run. What is the most likely effect of this on the firm's long-run average cost (LRAC) curve?

  1. Adownward shift
  2. Bmovement to the left
  3. Cmovement to the right
  4. Dupward shift

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Correct answer: A. downward shift

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