CAIE A-Level Economics A2 7.7.1 Firm Size Questions
Practise explaining why small and large firms coexist and how economies of scale, specialisation and services shape firm size in A2 questions.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- Explain why small and large firms coexist and how scale, specialisation, services and market conditions affect firm size.
CAIE A-Level Economics A2 7.7.1 Firm Size Questions question 1
[Maximum number: 1]
What is likely to make it more difficult for a small firm to survive?
A
increased preference on the part of consumers for distinctive non-standardised products
B
reductions in the rate of interest charged by commercial banks
C
the absence of effective barriers to the entry of potential competitors
D
the existence of decreasing returns to scale
C
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