Economics 2281 · O Level · Firms

Firms — practice question

When small firms are compared with large firms, which statement is true?

  • ASmall firms are more able to adapt to changes in market conditions.
  • BSmall firms are more able to reduce competition through barriers to entry.
  • CSmall firms benefit from lower cost per unit from economies of scale.
  • DSmall firms have higher total fixed costs and lower average fixed costs.

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