JAMB Economics 2011 Objective — Question 13
Question 13 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.
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A firm will experience diseconomies of scale when
- A. A. there is shortage in labour supply
- B. B. the size of market is small
- C. C. there is an increase in the price of raw materials
- D. D. there are difficulties in coordinating productionCorrect
Explanation
Diseconomies of scale occur in the long run when the firm becomes too big such that production coordination becomes a problem.
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