The advantages that arise from economies of scale make entry difficult for new firms. As a result, monopolies and oligopolies are often associated with __________ and___________.
A) b and e
B) low costs; high prices
C) low costs; low prices
D) antitrust; laissez-faire
E) competition; high prices

Question

Quizplus · Accepted Answer

Economies of scale allow monopolies and oligopolies to produce at lower costs, but they often set higher prices due to the lack of competition.

The Advantages That Arise from Economies of Scale Make Entry