An industry where the minimum eﬃcient scale is large when compared to the overall market is likely to be an oligopoly.

Question

Quizplus · Accepted Answer

In an industry where the minimum efficient scale is large when compared to the overall market, it is difficult for new firms to enter and compete with existing firms. This creates a market structure where a small number of large firms dominate the market, known as an oligopoly.

An Industry Where the Minimum Eﬃcient Scale Is Large When