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Apart from Sales (market size and share) what are likely to be the key internal or external factors that are limits to activity growth:
a) in the short run?
b) In the long run?

2007-04-22 00:33:42 · 1 answers · asked by trays o 1 in Business & Finance Other - Business & Finance

1 answers

I assume the 'activity' in question must relate to the production of items for sale (since you fail to mention anything else) ...

a) Short term limits will depend on the Variable Cost factors (eg. funds available to finance the production, raw materials available to purchase, workforce available to process the materials etc)

b) in the long run factors will relate to Fixed Costs (eg. Factory size etc) and any limitations imposed by outside forces (eg. such as competition from new entrants and government laws against monopoly etc)

2007-04-22 10:21:51 · answer #1 · answered by Steve B 7 · 0 0

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