Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,
a. there will be approximately 20 firms in the market
b. we should expect to see a few large competitors
c. we should expect to see many small competitors
d. we should expect a natural monopoly to emerge
e. minimum efficient scale is too small for perfect competition to exist
B
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The change in quantity demanded derived from a change in price is
a. the movement along a demand curve b. the movement along a supply curve c. a shift in the demand curve d. a shift in the supply curve
A price floor in a perfectly competitive market
a. creates more harm for sellers than gain for buyers b. is effective only it is set at the equilibrium price c. is a Pareto improvement d. can turn an inefficient outcome into an efficient outcome e. creates more harm for buyers than gain for sellers