WAEC Economics 2018 Objective — Question 18
Question 18 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.
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"The larger a firm, the lower its cost of production." This statement explains the
- A. law of diminishing returns
- B. concept of economics of scaleCorrect
- C. law of comparative cost advantage
- D. theory of division of labour
Explanation
This statement describes economies of scale — as a firm grows larger, its average cost of production falls.
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