Suppose the widget industry experiences significant economies of scale. Which of the following is likely to be true?
A) The economies of scale will provide other firms an incentive to enter the industry.
B) Firms in the widget industry will make zero economic profits in the short run.
C) The economies of scale will form a natural barrier to entry in the widget industry.
D) Large economies of scale will provide the firms in the market an incentive to co-operate.
Correct Answer:
Verified
Q2: Which of the following could form a
Q3: Which of the following is an example
Q4: In a contestable market, _.
A) potential entrants
Q5: Unlike an oligopolistic market, a monopolistically competitive
Q6: Which of the following industries would be
Q8: _ refers to an implicit or explicit
Q9: The N-?rm concentration ratio measures the:
A) total
Q10: Which of the following statements is true
Q11: Which of the following strategies can firms
Q12: Which of the following is true of
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