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JAMB Economics 1984 Question 8

Question 8

Theory of Production

The advantages that accrue to a firm as the size of the firm increases are known as

  1. A.external diseconomies
  2. B.internal returns to scale
  3. C.internal economies
  4. D.internal diseconomies
  5. E.constant returns to scale.
Show the answer and explanation

Answer: C (internal economies)

Explanation

Cost savings that a firm gains from its own growth are internal economies of scale.