Post Utme Al Hikmah University 2017 Commerce Question 30

Practice objective / multiple choice question 30 from the 2017 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2017 Commerce Objective / Multiple Choice
Question 30 POST_UTME_AL-HIKMAH_UNIVERSITY • 2017 • COMMERCE • objective

A firm specializes in producing a single product. This specialization allows the firm to reduce costs and increase efficiency. However, it also makes the firm vulnerable to changes in market demand. What is the name of this phenomenon?

Answer Options

A. Economies of scale
B. Diseconomies of scale
C. Risk aversion
Correct Answer D. Concentration risk
Correct Answer
D
Correct Option:
Concentration risk

About This Question

This is Post Utme Al Hikmah University 2017 Commerce Question 30. It is one of the objective questions from the 2017 Post Utme Al Hikmah University Commerce examination.

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