Economies of scale is an example of
A) rent seeking.
B) consumer surplus.
C) a government-created barrier.
D) an externality.
E) a natural barrier.

Question

Quizplus · Accepted Answer

Economies of scale are a natural barrier because they refer to the cost advantages that firms experience as they increase production levels. As firms produce more, they are able to take advantage of these cost efficiencies, creating a barrier for smaller firms that cannot compete on price.

Economies of Scale Is an Example of