When There Are External Economies of Scale, an Increase in the Size

Multiple Choice

When there are external economies of scale, an increase in the size of the market will

A) not affect the number of firms, but will lower the price per unit.
B) decrease the number of firms and lower the price per unit.
C) decrease the number of firms and raise the price per unit.
D) increase the number of firms and raise the price per unit.
E) increase the number of firms and lower the price per unit.