One Finnish mobile (cell) phone manufacturing firm produces around 20% of the total output of all goods made in Finland. This public limited company employs more workers and purchases more capital goods than most other Finnish firms. It also provides a large share of the country’s exports.
(a)[2]
Define the term ‘public limited company’.
(b)[4]
Explain two reasons for the differences in the size of firms in the same industry.
(c)[6]
Analyse why a firm may decide to change the proportion of capital and labour it employs.
(d)[8]
a subsidy to producers is a payment intended to encourage production
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “offers shares to the general public” …