Short-Run and Long-Run Production

The introduction of new technology will increase efficiency but will also cause an increase in unemployment.

Discuss the extent to which you agree with this statement.

Analyse and consider the extent of the link between marginal cost, diminishing returns and economies of scale.

Explain the law of diminishing returns and its relevance to the shapes of the marginal cost curve and the average variable cost curve of a firm.

What costs ought a profit-maximising firm take into consideration when making decisions about price and output?

Explain the link between diminishing marginal returns and the shape of a firm’s short-run marginal cost curve and short-run average total cost curve.

What relation is there, if any, between the law of diminishing returns and internal and external economies of scale?

Why is it important for a firm seeking to maximise profits to distinguish between the concepts of diminishing returns and economies of scale?

‘If a firm is experiencing diminishing returns and diseconomies of scale, it means that its output must be decreasing.’

Explain whether this statement is true.

Explain what is meant by diminishing returns and economies of scale, and consider whether diminishing returns can occur only in perfect competition and economies of scale in imperfect competition.

Explain whether the idea of diminishing returns contradicts the concept of economies of scale.