If minimum average cost is the same over a large range of output,
A)the market will evolve into a natural monopoly
B)minimum efficient scale is large as well
C)only a few large firms will survive in the long run
D)smaller firms have a cost advantage over larger firms
E)firms of varying sizes can coexist

Question

Quizplus · Accepted Answer

If minimum average cost is the same over a large range of output, it means that there is no significant cost advantage for larger firms to achieve economies of scale. This allows firms of varying sizes to coexist in the market, rather than leading to a natural monopoly or only a few large surviving firms.

If Minimum Average Cost Is the Same Over a Large