Question No 29:
All of the following are internal economies of scale for a firm EXCEPT which ONE?
A. The firm is able to reduce administration costs per unit of output when it opens a second production plant.
B. The firm can buy raw materials from other firms at lower prices when it buys in bulk.
C. TV advertising costs can be spread over a larger output.
D. Training costs are reduced when the firm can draw on the development of pool of skilled labour in the region due to colleges setting up training courses for the industry.
Answer: D
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