If the Minimum Efficient Scale of Production Is Small Relative

question 34

Multiple Choice

If the minimum efficient scale of production is small relative to the size of a market,then

• A)the industry will tend to be highly concentrated
• B)there will be much strategic interdependence among the sellers in the industry
• C)the industry is unlikely to be an oligopoly
• D)it is more likely that sellers in the industry will successfully collude
• E)there will be much merger activity in the industry

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Definitions:

Interpretation

The process of explaining or finding the meaning of something, often applied to data, text, and observations.

Coefficient of Correlation

A statistic that measures the degree to which two variables are linearly related, with values ranging from -1 to 1.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Independent Variable

A variable in research that is manipulated or categorized to observe its effect on a dependent variable.