Economies of Scale Act as a Barrier to Entry Because

question 95

Multiple Choice

Economies of scale act as a barrier to entry because

• A)one large firm can supply the market at a higher average cost than many small firms could
• B)firms are not allowed by law to sell output below average cost
• C)large firms can hire inputs at a higher price than smaller firms could
• D)firms will not compete with a larger firm when there are differences in marginal cost
• E)one large firm can produce the market output at a lower average cost than many small firms

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Definitions:

Incentivize Employees

Offering rewards or benefits to motivate workers and enhance their performance.

Performance Metrics

Quantitative and qualitative measurements used to assess and monitor the efficiency, performance, and success of an organization or individual.

Compensation

Payments or benefits provided to employees in exchange for their services or to cover losses or damages.

Managerial Economics

An academic discipline that applies microeconomic theory and quantitative methods to solve business decision problems.