Economics 2281 · O Level · Firms' costs, revenue and objectives

Firms' costs, revenue and objectives — practice question

What might lead to internal diseconomies of scale for a firm?

  • Aa fall in demand for the products produced by the firm
  • Ba merger with another firm that results in slower decision-making
  • Cspending more on research and development to create new products
  • Dthe lack of skilled labour in the geographical area where the firm is based

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