Why did a firm need a licence even to expand its output?

So output did not exceed what the economy neededCorrect answerYour answerSo that the firm could pay lower taxes on its new outputCorrect answerYour answerSo that foreign firms could buy the extra outputCorrect answerYour answerSo that prices would rise faster in the marketCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The licence for expansion was meant to make sure the quantity produced was not more than the economy needed.

Concept: Industrial licensing
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsIPR 1956 and licensing

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Why did a firm need a licence even to expand its output?

Explanation