What is most likely the subject of the extract which is missing from this text?

Date: 2015-10-07; view: 501.

Which of the following statements would the author most probably disagree with?

Which of the following statements would the author most probably agree with?

It can be conferred from the text that economies of scale

It can be derived from the text that in the post-war period to increase firms' competitiveness the government encouraged them to

(A) sell a large part or all of the company to managers.

(B) close down the operation.

(C) divest themselves of operations which do not fit logically with their main business.

(D) consolidate under single ownership.

(A) are most efficient during the crisis.

(B) decline long-run average cost that occurs as a firm increases all inputs and expands its scale of production.

(C) are as efficient as conglomerates.

(D) have no apparent advantages.

(A) The rapid growth of TNCs was caused by the necessity to penetrate foreign markets.

(B) Divestment is used to avoid monopoly legislation.

(C) Many of the sales of subsidiaries are caused by new monopoly legislation.

(D) A conglomerate is most effective during the crisis.

(A) A small firm is owner managed.

(B) Small firms suffer from high level of competition.

(C) The sources of financing MBOs are re-mortgaging personal assets and selling investments.

(D) External economies of scale are enjoyed by an industry as it decreases in size.

(A) public finance

(B) problems facing small firms

(C) technology

(D) competition policy