If the minimum efficient scale of production is small relative to the size of a market, then
a. the industry will tend to be highly concentrated
b. there will be much strategic interdependence among the sellers in the industry
c. the industry is unlikely to be an oligopoly
d. it is more likely that sellers in the industry will successfully collude
e. there will be much merger activity in the industry
C
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Imagine you are a buyer in a double oral auction with a reservation value of $10 and there is a seller asking $8
a. How much will you gain from accepting this offer? b. If you are the only buyer, and you know that the lowest ask price is $2, should you accept this offer?
Which of the following statements is false?
A) Between 1980 and 2006, the index of openness has risen for most countries. B) Since 1950, international trade has been growing faster than the growth of world output. C) A country cannot be a leading world exporter without a high index of openness. D) Two of the above are true.