JAMB Economics 2014 Objective — Question 18
Question 18 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.
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If the production cost of a large firm is higher than that of a small firm, it is experiencing
- A. internal diseconomies of scaleCorrect
- B. external economies of scale
- C. external diseconomies of scale
- D. internal economies of scale
Explanation
Internal diseconomy of scale is the disadvantage that increases the cost of production of a firm as a result of its size being too large.
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