If there are significant economies of scale in an industry, then

Name: If there are significant economies of scale in an industry, then
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Question

Quizplus · Accepted Answer

Significant economies of scale in an industry mean that the cost per unit of output decreases as the scale of production increases. This makes it more efficient for a large firm to produce than a small firm, resulting in a lower unit cost for the large firm. Therefore, choice A is the correct answer as a large firm can produce at a lower unit cost than a small firm.

If There Are Significant Economies of Scale in an Industry