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Costs and economies of scale

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Question 4

What is the most likely cause of a movement from G to H in the diagram below?

Long-run average cost curve showing a movement from G to H

A regional college introduces new training programs that increase the pool of skilled applicants for all firms in the sector.

The firm is able to negotiate bulk-buying discounts on raw materials as it expands its production volume.

An increase in national corporation tax rates raises the overall cost burden on corporate profits.

The firm experiences communication breakdowns and coordination issues between management levels as its workforce grows.

Costs and economies of scale Questions

  1. A Level
  2. /Economics
  3. /Costs and economies of scale