Economics 9708 · AS & A Level · 7.7

7.7 — practice question

In many developed economies, large and small firms often operate alongside one another in the same industry. What is the most likely explanation for the survival of the small firms?

  • 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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