A constraint on the expansion of a firm is the

  • A Rate of advertisement
  • B Level of producers income
  • C Tastes of the consumers
  • D Size of the market
jamb 2006english-language

The correct answer is D. Size of the market

The size of the market determines the potential demand for the firm’s products or services and thus limits the firm’s ability to grow its sales and profits.

If the market is too small or saturated, the firm may face difficulties in expanding its output or entering new segments

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