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6 marksCosts of Production and Economies of Scale

CSEC Economics · May/June 2007 · Paper 2 · Question 3(d)

If the quantity of capital available for production in your country increases but labour remains fixed, would the law of diminishing returns still operate? Explain your answer.

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Other parts of this question

  1. 3(a)Define a 'production possibility curve'.[2 marks]
  2. 3(b)Identify THREE advantages of the division of labour.[3 marks]
  3. 3(c)With reference to the sugar industry, distinguish between 'primary' and 'secondary' factors of production.[4 marks]

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