A given level of consumer demand will support a large number of producers in an industry if

A) minimum efficient scale (MES) is very large.
B) the long-run ATC curve decreases as output levels increase.
C) diseconomies of scale are already encountered even at low levels of output.
D) exclusive patents and high government license fees are prevalent in the industry.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to minimizing its costs.

Long-Run ATC

The average total cost of production when all inputs, including capital, are variable and the scale of production can change.

Diseconomies of Scale

The phenomenon where operational costs per unit increase as the output increases, often due to inefficiencies or management challenges.