The _____ theory states that in those industries where the output required to attain economies of scale represents a significant proportion of total world demand,the global market may be able to support only a small number of enterprises.

Question

Quizplus · Accepted Answer

The new trade theory suggests that in industries with significant economies of scale, the global market may only support a few large firms, as these firms can produce at lower costs and dominate the market.

The _____ Theory States That in Those Industries Where the Output