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If the production of a large firm is higher than that of a small firm,...

Economics
JAMB 2014

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
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Correct Answer: Option C
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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