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:

Timbre

The quality of a sound apart from its pitch or loudness; timbre enables us to distinguish a clarinet from an oboe, or one person’s voice from another.

Sound Quality

The measure of how pleasing or accurate an audio output is from any given source.

Pitch

The quality of a sound governed by the rate of vibrations producing it; the degree of highness or lowness of a tone.

Signal Received

In communication and signal processing, this refers to the successful reception of a transmitted message or signal by an intended receiver.