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

Firms’ costs, revenue and objectives — practice question

What is one likely reason that firms do not increase in size?

  • AExternal diseconomies of scale occur at high levels of output.
  • BInternal economies of scale occur at high levels of output.
  • CInternal economies of scale occur at low levels of output.
  • DInternal diseconomies of scale occur at low levels of output.

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