________ lead(s)to a condition where a single firm making 100 percent of the product is the most efficient.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm experiences as it increases its output. This means that the more a firm produces, the lower the average cost of production becomes. As a result, a single firm making the entire product can be the most efficient due to the reduced cost of production. This can create a barrier to entry for smaller firms, making it difficult for them to compete with the larger firm's lower prices.

________ Lead(s)to a Condition Where a Single Firm Making 100