Economics Essays
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CIE JUNE 2021 O LEVEL
Firms & Industry
Consumers in Uruguay are eating more processed foods. Factors of production, including enterprise, have responded to this change. Firms in the processed food industry have become more capital-intensive. All of Uruguay’s industries were affected by the rise in its inflation rate, from 6.2% in 2017 to 7.7% in 2018
Analyse why a firm may become more capital-intensive (6 Marks)
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