Economies of Scale Will Create a Barrier to Entry in an Oligopoly

question 189

Multiple Choice

Economies of scale will create a barrier to entry in an oligopoly industry when

• A)a firm's minimum efficient scale occurs where long-run average total costs are constant.
• B)the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.
• C)the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales.
• D)the industry's four-firm concentration ratio is less than 40 percent.

---

Definitions:

Diverse Population

A group of individuals that vary in characteristics such as race, ethnicity, socioeconomic status, and cultural background.

Urban and Rural

Terms used to describe geographical areas, with "urban" referring to areas that are densely populated and "rural" referring to areas that are less populated and often characterized by farming or agriculture.

Case Study Method

A research strategy that involves the in-depth study of one or more cases within their real-life context.

Ethical Considerations

involve the principles and values that guide decisions and actions by highlighting what is right, fair, and just.