Economies of scale create __________ for existing firms, which in turn creates__________ for potential entrants.
A) b and e
B) problems; opportunities
C) savings; costs
D) losses; profits
E) advantages; disadvantages

Question

Quizplus · Accepted Answer

Economies of scale allow existing firms to lower their costs as they produce more, giving them an advantage over potential entrants who cannot achieve the same cost efficiencies initially, thus creating disadvantages for those entrants.

Economies of Scale Create __________ for Existing Firms, Which in Turn