The number of efficient plants compatible with domestic consumption of the refrigerator industry in Sweden is 0.7.Which of the following implications is (are)correct?
A) In the absence of imports, the refrigerator industry in Sweden is monopolistic.
B) The refrigerator industry in Sweden is perfectly competitive.
C) The refrigerator industry in Sweden is monopolistically competitive.
D) None of the preceding answers is correct.

Question

Quizplus · Accepted Answer

The number of efficient plants being less than 1 (0.7) suggests that the domestic market cannot support even one efficient plant, indicating a lack of competition and potential for monopoly in the absence of imports.

The Number of Efficient Plants Compatible with Domestic Consumption of the Refrigerator