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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 45)

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QUESTION: 177 Exam Topic: 2, Exam Pool B

All of the following will tend to increase the number of firms in any one industry except which one?

Decreasing returns to scale
High transport costs
Low barriers to entry
Product differentiation

Answer(s): D

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QUESTION: 178 Exam Topic: 2, Exam Pool B

All the following statements about small firms are correct except one.
Which statement is incorrect?

Small firms do not generally raise finance on the capital market
Banks may refuse to lend to small firms because of the risk involved
Small firms are common in industries which display increasing returns to scale
Small firms are common in industries where there are niche markets

Answer(s): D

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QUESTION: 179 Exam Topic: 2, Exam Pool B

Total economic welfare derived from an activity will be maximized if the activity is undertaken up to the point at which

Marginal private benefit exceeds marginal private cost
Marginal social benefit equals marginal social cost
Marginal social benefit equals marginal private benefit
Marginal private benefit equals marginal private cost

Answer(s): B

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QUESTION: 180 Exam Topic: 2, Exam Pool B

An example of forward vertical integration is

The merger between Mercedes and Chrysler in the car industry
A car manufacturer taking over an engine factory
The Ford car company producing refrigerators
A car manufacturer investing in a chain of car showrooms and dealers

Answer(s): D

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