Economics (AS & A Level) · May / June 2021 · Paper 33 · Question 8

What would be likely to help a small firm to survive and what might be a threat to its survival?

1. Ahelp: contestability of the market; threat: expensive new technology
2. Bhelp: customers valuing personal service; threat: new government regulations on its business
3. Chelp: low barriers to entering its industry; threat: managerial diseconomies of scale
4. Dhelp: selling a homogeneous product; threat: new firms entering the market

As printed in the paper