Is It Possible for an Equilibrium That Is Consistent with Purely

question 17

Essay

Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies?
If so, explain how this could happen. If not, why not?

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Definitions:

Regression Analysis

Regression analysis is a statistical method used for estimating the relationships among variables, often to determine how the typical value of the dependent variable changes when any one of the independent variables is varied.

Least Squares Line

The best-fitting straight line through a set of data points, minimizing the sum of the squares of the vertical distances of the points from the line.

Weight

A measurement of the gravitational force acting on an object, often used in statistical analysis to assign importance to different elements of a dataset.

Height

A measurement of how tall a person or object is, typically measured in units like feet, inches, meters, or centimeters.