Economics · May / June 2023 · Paper 12 · Question 16
2281Firms
What could cause 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
As printed in the paper
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Correct answer: B. a merger with another firm that results in slower decision-making
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