The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-If an industry experiences economies of scale in production, then entry into the market by other firms is easy.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-If an industry experiences economies of scale in production, then entry into the market by other firms is easy.

Quizplus · Accepted Answer

If an industry experiences economies of scale in production, it means that larger firms can produce at a lower cost than smaller firms. This can create barriers to entry for new firms, making entry into the market difficult rather than easy. Therefore, the statement is false.

The Figure Given Below Shows the Cost and Revenue Curves