Scale of production is limited by size of the market
Expansion brings diminishing returns
Large firms can carter for wide markets
Small firms can provide personal services
All of the above
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The answer is B bcos diminishing returns can occur in both big and small firms.If the manager or management is not rational or creative enough to know when to set in expansion,marginal variables or input will not guarantee marginal output or revenue.Diminishing returns means the exact process or situation whereby added or marginal variables or inputs yields constant or less outputs instead of economics of scale.
B z d ansa nt bcos xpansion brings abt demishing return. Xpasion of small firms do nt bring deminishing return.
Wot z demishing return.
It z d fall in d Total output of a firm caused by a contineous addition of variable factors of production t a fixed factors of production at a particular period of time.
Take 4 instance, if more capital z injected into a small firm, giving d firm d opportunity t employ more machine n labour thereby increasing d output of d firm which inturn reduce d cost of production n even d price leading to an increase in quantity demanded which wil increase d profit of d firm.
I am coming, ba3 low
The ansa is perfectly B, cos when there is a big expansion there is surely diminishing return and this builds up a small Firm . A small firm is known as the process which a particular buisness is owned by a person or an individual and makes small amount of money from the buisness.....
Xpansion of small firm wil instead of leading to deminishing return attract economics of scale. Take 4 instance, if a large/xpand firm want to print banner for invitation, its charge will collocate wit d number t be printed, d higher d no d lesser d averge charge n vice versa. Similar tins occurs in d average cost of production. B is d ansa nt becos xpansion leads t deminishing return bt bcos it does nt. Williams3093 2go
I think it b becos expansion bring diminishing indeed as a result of continous addition of variable factors of production
B is de total correct ans, b'cos de expansion bringin deminishing return is not de reasons 4 de existance of small firms
b s dryt option cos a small scale firm investd in a business with low capital. if a small scale firm tries to xpand business whch xceed d total money at hand and no solid backup dere myt b diminishing returns caused by inability to make a perfect decision.
the answer is c
cause they said NOT a reason and c is not a reason because it's the reason large firms exist not small ones
