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If an Industry Is Characterized by Economies of Scale

Question 5

Multiple Choice
If an industry is characterized by economies of scale:

If an industry is characterized by economies of scale:


A) barriers to entry are usually not very large.
B) long-run average costs of production increase as the quantity the firm produces increases.
C) capital requirements are small due to the efficiency of the large-scale operations.
D) the costs of entry into the market are likely to be substantial.

Correct Answer:

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