Economics 9708 · AS & A Level · 7.5

7.5 — practice question

Which factor is most likely to cause a firm’s profits to be unstable and experience large fluctuations?

  • AFixed costs are a high percentage of total costs.
  • BIt produces a diversified range of products.
  • CIt produces basic consumer products.
  • DIt sells its product in a number of different markets.

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