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Economics · May / June 2019 · Paper 11 · Question 13

2281Firms

Why is the energy supply industry dominated by very large firms in many economies?

  1. AGovernment controls prevent the exploitation of consumers.
  2. BHigh fixed capital costs exist.
  3. CLabour-intensive production techniques are used.
  4. DNon-price advertising increases competition.

As printed in the paper

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Correct answer: B. High fixed capital costs exist.

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