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:

Exchange Opportunities

Situations or conditions that allow for the trading of goods, services, or information between parties.

Particularistic Values

Norms and moral standards that are considered unique or applicable to specific groups, cultures, or situations rather than universal.

Small Groups

Social units consisting of a limited number of members, allowing for direct interaction and close relationships.

Social Facts

Durkheim's term for a set of norms, values, and structures external to the individual that exert social control.