Sometimes an old company in an industry can build a large plant that has lower cost per unit than a potential entrant (newcomer)can duplicate.This is an example of a market
A)weakness based on cost.
B)power based on scale economies.
C)power based on specific assets.
D)weakness based on reputation deficiency.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of a power based on scale economies, where an old company has the advantage of lower costs per unit due to their large plant size and operational efficiency. This would make it difficult for a potential entrant to compete unless they could also achieve a similar scale and efficiency.

Sometimes an Old Company in an Industry Can Build a Large