Economics · May / June 2019 · Paper 11 · Question 13
2281Firms
Why is the energy supply industry dominated by very large firms in many economies?
- AGovernment controls prevent the exploitation of consumers.
- BHigh fixed capital costs exist.
- CLabour-intensive production techniques are used.
- DNon-price advertising increases competition.
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Correct answer: B. High fixed capital costs exist.
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