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

Firms’ costs, revenue and objectives — practice question

The large scale of Japan’s domestic car industry has allowed Japanese car producers to be more price competitive than rival car producers. What is an explanation for this?

  • AEconomies of scale are present in the Japanese car industry.
  • BManagerial problems exist in the Japanese car industry.
  • CProductivity is low in Japan.
  • DThe Japanese car industry is very labour-intensive.

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