Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
How do economies of scale act as a barrier to entry?
The role of economies of scale as a barrier to entry.
Economies of scale refer to a reduction in the average cost when the output increases. The economies of scale for the existing firms are always higher than those of the newly entered firms. This is because the cost of production of the newly entered firms is higher than the cost of already established firms...
Chapter 23 Solutions
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