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

Firms’ costs, revenue and objectives — practice question

What is likely to happen to a firm that grows in order to benefit from economies of scale?

  • AAverage costs of production will decrease.
  • BAverage costs of production will increase.
  • CProfits will decrease.
  • DThe price of the firm’s products will increase.

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