The presence of significant scale economies in an industry implies that

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Significant scale economies imply that a large share of the market is required by each firm to achieve the lowest possible cost per unit, as the fixed costs are spread over a larger output. This can create barriers to entry as new firms may struggle to enter the market and match the low unit costs of existing firms. The other choices are incorrect as minimum efficient scale (A) can occur at high levels of output, barriers to entry may still exist (B), firms may not behave as perfect competitors (C), and efficiency cannot be compared between industries without more information (D).

The Presence of Significant Scale Economies in an Industry Implies