Answered: Explain why an industry with economies…

Explain why an industry with economies of scale for larger firms tends to be an oligopoly. Why don't we see this for an industry like local restaurants?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 4P

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Explain why an industry with economies of scale for
larger firms tends to be an oligopoly. Why don't we see
this for an industry like local restaurants?

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