Economics 9708 · AS & A Level · 7.7

7.7 — practice question

In many developed economies, large and small firms commonly operate alongside each other within the same industry. What is the most likely reason why these small firms continue to survive?

  • AThey each offer a much wider range of products.
  • BThey have a higher minimum efficient scale.
  • CThey pay much higher wages to their staff.
  • DThey provide a more personal level of consumer service.

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