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Answer : 4. "Happens in firms when they expand their product"
Internal profit–
5Q:
Internal profit–
- 1Happens when internal trade expandsfalse
- 2Happens when business expandsfalse
- 3Happens in economy when they increasefalse
- 4Happens in firms when they expand their producttrue
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Answer : 4. "Happens in firms when they expand their product"
Explanation :
Explain: -Internal profit are made to firms when they expand their products. High level productivity, labour-division and modern equipments when used in better way, then internal profit is made. They are called as internal because firms increase their quality & quantity of production then only they gain internal profit.