External Scale Economies Are More Likely to Arise in an Industry

question 7

Multiple Choice

External scale economies are more likely to arise in an industry:

• A)in which a single firm caters to the total market demand.
• B)in which a few dominant firms compete aggressively with each other in terms of product prices.
• C)in which firms readily share technology improvements.
• D)which is solely export oriented.

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Definitions:

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Adolescent Egocentrism

A characteristic of adolescent thinking that leads to self-consciousness, as teens believe that their actions and appearance are constantly being scrutinized by others.

Self-consciousness

An acute sense of self-awareness that is marked by self-reflection and the awareness of how one is perceived by others.

Hypothetical-deductive Reasoning

A type of logical thinking that involves forming hypotheses and systematically testing them to deduce conclusions.