Multiple Choice
Why does the economy of scale lead to a monopoly situation in the market?
A) Because it provides legal barriers to entry into this market
B) Because a new firm in this market will face high average costs and cannot compete
C) Because it gives control of natural resources to only one firm
D) Because network effects provide incentives for new sellers to enter the market
Correct Answer:

Verified
Correct Answer:
Verified
Q158: The main source of natural market power
Q159: The following figure shows the demand (D),
Q160: Second-degree price discrimination occurs when _.<br>A) each
Q161: The following figure shows price versus quantity
Q162: The following figure shows the demand curve
Q164: A musician was guaranteed by the government
Q165: The following figure shows the market demand
Q166: The following figure shows the costs and
Q167: The following figure shows the demand curve
Q168: The following table shows the quantities sold