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Why would we expect firms in the informal sector to be so much smaller than firms in the formal sector?A.Workers in the informal sector earn higher wages than those in the formal sector.B.Firms in the informal sector rely more on machinery to produce their goods and services than those in the formal sector.C.Because these firms are operating illegally, they earn higher profits than firms operating legally, which allows them to remain small.D.Because firms in the informal sector are operating illegally, they have less capital than firms operating legally.
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