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Question

Based on the demand for a product through the barter system, large-scale production leads to


A

More profit

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B

Normal profit

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C

Less profit

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D

Zero profit

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Solution

The correct option is D

Zero profit


In a barter economy, various goods cannot be quickly exchanged for other goods. Hence, the demand for various goods increases at a slower pace. Large-scale production is not profitable in view of this limited demand for various goods.


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