How Do Economies of Scale Result in Barriers to Entry

question 80

Essay

How do economies of scale result in barriers to entry into oligopoly models?

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Definitions:

Alien Corporation

A corporation formed in another country but doing business in the United States.

Domestic Corporation

In a given state, a corporation that is organized under the law of that state.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and other obligations.

Corporate Privilege

A legal principle that allows corporations to withhold certain confidential communications from disclosure, often relating to legal advice.