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

Firms’ costs, revenue and objectives — practice question

What is the most likely factor that would encourage a business to expand internally?

  • Awhen diseconomies of scale occur at low levels of output
  • Bwhen economies of scale occur at high levels of output
  • Cwhen new firms enter the market and increase competition
  • Dwhen the firm only supplies the local market

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