If economies of scale are so pronounced in an industry that only one firm can survive in the industry, this firm is called a(n) __________ monopoly.
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I can not understand this definition. Firstly, what does "substantial economies of scale" mean????? Secondly, why substantial economies of sacle indicates only one firm is viable ? what is the logic behind this?? I feel totally confused thanks for explanation
Richelle C.
Which of the following describes an industry that experiences economies of scale, even at high levels of output? Natural monopoly Perfectly competitive industry Oligopoly Monopolistic competition
Sanchit J.
Under oligopoly since there are only a few firms in the industry, the actions of one firm do not influence the other firm in the industry.
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