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Edexcel A-Level Economics A2 3.3.2 2b Law of Diminishing Returns Questions

Practise Edexcel IAL Economics 3.3.2.2b by identifying diminishing returns in cost data and explaining rising short-run marginal cost.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • identify where diminishing returns begin from a total-cost table in context
  • explain why a short-run marginal-cost curve slopes upwards after diminishing returns set in

Edexcel A-Level Economics A2 3.3.2 2b Law of Diminishing Returns Questions question 1

[Maximum number: 1]

The diagram shows a short-run marginal cost curve for a small café in Thailand.

Figure for Question Edexcel A-Level Economics A2 3.3.2 2b Law of Diminishing Returns Questions question 1 — Edexcel A-Level Economics A2

Which one of the following is the reason why the MC curve slopes upwards from point X to point Y ?

A

Decreasing returns to scale

B

Increasing fixed costs

C

Diminishing returns

D

Diseconomies of scale

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