Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 10
9708Growth and survival of firms
Which characteristic of a market is a reason for a firm to remain small?
- AThe minimum efficient scale is high.
- BThe potential for x-inefficiency is high.
- CThere are significant economies of scale.
- DThere is limited access to financial capital.
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Correct answer: D. There is limited access to financial capital.
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