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JAMB Economics 2019 Objective — Question 36

Question 36 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Internal economies of scale are the advantages which

  • A. firms obtain directly from expanding their own operations, partly derived from managerial efficiencyCorrect
  • B. firms obtain from clustering together in one location
  • C. arise from government subsidies
  • D. arise from reduced competition

Explanation

Internal economies of scale are the advantages which firms obtain directly from expanding their own operations; they are also derived from managerial efficiency.

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