Economies of scale will lead to only one firm in the industry because

Question

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Economies of scale occur when a larger firm can produce goods or services at a lower cost per unit than a smaller firm. As a larger firm continues to produce more output, it can lower its prices to drive out smaller competitors who cannot match the lower prices due to their higher production costs. Eventually, only one firm with the lowest average cost will remain in the industry. B, C, and D are not necessarily true and do not necessarily lead to only one firm in the industry.

Economies of Scale Will Lead to Only One Firm in the Industry