Suppose the Widget Industry Experiences Significant Economies of Scale

question 3

Multiple Choice

Suppose the widget industry experiences significant economies of scale. Which of the following is likely to be true?

• A) The economies of scale will provide other firms an incentive to enter the industry.
• B) Firms in the widget industry will make zero economic profits in the short run.
• C) The economies of scale will form a natural barrier to entry in the widget industry.
• D) Large economies of scale will provide the firms in the market an incentive to co-operate.

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Definitions:

Political Parties

Organizations that represent specific political ideals and aim to gain power through elections to influence public policy.

Accurate Recordkeeping

This refers to the precise and correct maintenance of business records, ensuring they accurately reflect transactions and events.

Conflicts of Interest

Situations where individuals or organizations have competing interests or loyalties, potentially compromising their decision-making.

Dress Sayings

Phrases or slogans often printed on or associated with clothing that express ideas, attitudes, or humor.