
Economies of scale can lead to an oligopolistic market structure because
A) if larger firms have lower costs, new small entrants will not be able to produce at the low costs achieved by the big established firms.
B) if economies of scale are insignificant, only a few firms are able to produce at the low costs achieved by the big established firms.
C) a few firms can force rivals to produce at low levels of output.
D) a few firms can use high profits to keep out new entrants.
Correct Answer:
Verified
Q19: An oligopolist differs from a perfect competitor
Q20: A characteristic found only in oligopolies is
A)break-even
Q21: Which of the following is not a
Q22: As a measure of competition in an
Q23: A reason why there is more competition
Q25: A four-firm concentration ratio measures
A)the extent to
Q26: Oligopolies exist and do not attract new
Q27: Patents, tariffs, and quotas are all examples
Q28: Which of the following is not part
Q29: When large firms in oligopolies cut their
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