In the Soda Industry,production Costs Per Unit Continue to Fall

question 139

Multiple Choice

In the soda industry,production costs per unit continue to fall as the firm expands.In this type of industry,smaller rivals trying to enter the industry

• A) will easily be able to gain market power.
• B) have lower average costs.
• C) do not have high fixed costs.
• D) will have much higher average costs.
• E) experience a government-created barrier.