Post Utme Abu 2021 Commerce Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Abu Commerce examination.

Post Utme Abu 2021 Commerce Objective / Multiple Choice
Question 11 POST_UTME_ABU • 2021 • COMMERCE • objective

A firm specializes in producing only one product. This specialization leads to economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this phenomenon?

Answer Options

A. Risk
B. Uncertainty
Correct Answer C. Economies of scale
D. Diversification
Correct Answer
C
Correct Option:
Economies of scale

About This Question

This is Post Utme Abu 2021 Commerce Question 11. It is one of the objective questions from the 2021 Post Utme Abu Commerce examination.

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