O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2016 · Q131 Mark

Two firms agree to integrate their activities. What must result?

Achange in their ownership structure

Blowering of average costs of production

Cmove from national to international markets

Dreduction in the level of market risk

✓ Correct answer

A: change in their ownership structure

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2016 Paper 1 Variant 2, question 13.

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