If a firm must produce a significant share of market output before low average costs can be achieved, the structure of this industry will tend to be
A)monopolistic competition
B)perfect competition
C)oligopoly
D)either monopolistic competition or oligopoly
E)either perfect competition or monopolistic competition

Question

Quizplus · Accepted Answer

In an oligopoly, a few firms dominate the market, and economies of scale are significant, meaning that firms need to produce a large share of the market output to achieve low average costs.

If a Firm Must Produce a Significant Share of Market