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

question 28

Multiple Choice

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

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Definitions:

Outthink

To surpass in thinking; devising a solution or strategy that is more clever or effective than that of others.

Therapeutic Holding Environment

A supportive psychological and physical space provided by a therapist which allows clients to explore their thoughts and feelings safely.

Empathic Mirroring

A therapeutic technique whereby the therapist reflects the feelings or emotional experiences of the client, fostering understanding and empathy.

Limit-Setting Responses

Actions taken to establish boundaries in relationships or situations to protect well-being and maintain control.