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A-LevelEconomicsTheory of the FirmOct/Nov 2019Paper 3 Q31 Mark

A firm produces good X and good Y when the marginal product of both labour and capital is diminishing. The table shows the marginal products at a given output. marginal product of labour (units) marginal product of capital (units) good X 4 6 good Y 8 4 The firm should use ......1...... labour and ......2...... capital in the production of X and ......3...... labour and ......4...... capital in the production of Y. Which words complete the gaps 1, 2, 3 and 4 if the firm wished to increase productive efficiency? 1 2 3 4 A less more more less B less more more more C more less less more D more less less less

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The correct answer is . This question tests the candidate's understanding of theory of the firm within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2019 examination, Paper 3 Variant 1. It tests the topic of Theory of the Firm and is worth 1 mark.

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