_____ in an industry can be so large that demand is able to support only one firm.
A) Economies of scope
B) Diseconomies of scale
C) Economies of scale
D) Elasticity

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm's production costs per unit decrease as its output increases. In some industries, these economies of scale are so significant that they create a natural monopoly, where a single firm can supply the entire market more efficiently than multiple firms could, leading to a situation where only one firm is able to survive and thrive due to its cost advantage.

_____ in an Industry Can Be So Large That Demand