Asked by
Tasmin Sultana Chaity 1831489630
on Nov 05, 2024
Verified
Industries may be oligopolistic due to economies of scale.
Economies of Scale
Refers to the cost advantage experienced by firms when they increase their level of production. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced.
Oligopolistic
Pertaining to an oligopoly, a market structure with a few firms dominating the industry, leading to limited competition.
- Comprehend how economies of scale affect industry concentration and the level of competition.
- Identify factors contributing to industry being oligopolistic.
Verified Answer
LW
Learning Objectives
- Comprehend how economies of scale affect industry concentration and the level of competition.
- Identify factors contributing to industry being oligopolistic.