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The following is NOT a reason for the existence of small firms

The following is NOT a reason for the existence of small firms
  • A.
    Scale of production is limited by size of the market
  • B.
    Expansion brings diminishing returns
  • C.
    Large firms can carter for wide markets
  • D.
    Small firms can provide personal services
  • E.
    All of the above
Correct Answer: Option B
Explanation