O-LevelEconomicsMicroeconomic decision makers2281/12 · Oct/Nov 2021 · Q151 Mark

Two car manufacturers agree to merge. Which outcome would be a disadvantage for customers?

Aincreased capital for research and development

Blower average costs through economies of scale

Creduced range of vehicles produced

Duse of a wider range of marketing information

✓ Correct answer

C: reduced range of vehicles produced

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 15.

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