Economies of scale can lead to an oligopolistic market structure because A if

Economies of scale can lead to an oligopolistic

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25) Economies of scale can lead to an oligopolistic market structure because A) if economies of scale are insignificant, only a few firms are able to produce at the low costsachieved by the big established firms.B) a few firms can force rivals to produce at low levels of output.C) if larger firms have lower costs, new small entrants will not be able to produce at the lowcosts achieved by the big established firms.D) a few firms can use high profits to keep out new entrants.Answer: C 25) Diff: 2 Page Ref: 461/461 Topic: Economies of Scale Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Analytic Skills 26) A reason why there is more competition among restaurants than among large discountdepartment stores is that restaurants 26) Diff: 2 Page Ref: 461/461 Topic: Economies of Scale Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Analytic Skills 27) One reason why, in the last four decades, the number of new auto makers in the world has beenvery small compared to the past is that 27) Diff: 2 Page Ref: 461/461 Topic: Economies of Scale Learning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies in oligopolies AACSB: Analytic Skills 7
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