Industries, where economies of scale dictate that only a few firms produce, will be efficient if the markets in which they sell are
A)perfect.
B)contestable.
C)close to each other.
D)protected from entry.

Question

Quizplus · Accepted Answer

Contestable markets are efficient even with few producers because the threat of potential entry forces existing firms to behave competitively, keeping prices low and innovation high.

Industries, Where Economies of Scale Dictate That Only a Few