Economies of scale may be a barrier to entry in a situation in which

Name: Economies of scale may be a barrier to entry in a situation in which
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Question

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Economies of scale occur when the cost per unit decreases as production increases. This means that larger firms may have a cost advantage over smaller firms, making it difficult for new entrants to enter the market and compete. If only large-scale production can achieve lower per-unit costs, then new firms will face significant barriers to entry.

Economies of Scale May Be a Barrier to Entry in a Situation