Question 2(a)
[Maximum number: 1]
Figure 3 shows a long-run average cost (LRAC) curve diagram.
Figure 3
Which one of the following is the correct label to replace ' X '?
A
Diseconomies of scale
B
External economies of scale
C
Most efficient
D
Profit
Edexcel IGCSE Economics 1.2.3.c diseconomies of scale
Practise diseconomies questions by labelling average-cost diagrams and identifying bureaucracy or communication problems from options.
How this is tested
- Label economies, diseconomies and the efficient point on a long-run average cost curve.
- Identify bureaucracy as a diseconomy of scale in MCQ option sets about firm growth.