Economics JAMB

If the production of a large firm is higher than that of a small firm; it is experiencing?

A. external economies of scale
B. external diseconomies of scale
C. internal economies of scale
D. internal diseconomies of scale

Correct Answer:

Option C – internal economies of scale

Explanation

“Internal economies are those economies in production which occur to the firm itself when it expands its output or enlarge its scale of production”

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