As fixed costs increase, the number of firms in the industry decreases.

Name: As fixed costs increase, the number of firms in the industry decreases.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

As fixed costs increase, it becomes more difficult for small firms to enter the industry or compete with larger firms that can benefit from economies of scale. This often leads to consolidation and a decrease in the number of firms in the industry.

As Fixed Costs Increase, the Number of Firms in the Industry