Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

The company’s annual report indicated that it had gained from several changes. Which change is an internal economy of scale for this company?

  • Aan improvement in road and rail facilities that has reduced its distribution costs
  • Ban increase in the number of local specialist workers that it could recruit
  • Cthe introduction of new training at a local college for which staff have enrolled
  • Dthe reduction in the company’s costs by the purchase of a factory supplying components

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