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WAEC Economics 2002 Question 10

Question 10

Theory of Production

Despite the benefits large firms enjoy, it could be limited by the

  1. A.desire to make maximum profits
  2. B.introduction of efficient transport system.
  3. C.growth of specialization.
  4. D.extent of the market.
Show the answer and explanation

Answer: D (extent of the market.)

Explanation

A firm cannot grow beyond what its market can buy, so the size of the market limits it.