A constraint on the expansion of a firm is the

Assessment: JAMB UTME - Economics - 2006 Subject: Economics

Question 1 Report

A constraint on the expansion of a firm is the
Answer Details
The constraint on the expansion of a firm refers to a limiting factor that restricts the firm's ability to grow or increase its output. Among the options given, the size of the market is the most relevant constraint on the expansion of a firm because a firm's growth is largely dependent on the availability of customers or demand for its products. If the market is small, the firm may have limited opportunities for expansion, which can impede its growth potential. Therefore, the size of the market can be a constraint on the expansion of a firm.

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