Ask Question
18 April, 03:36

1. If some industries exhibit internal economies of scale, we should not expect to see (a) monopolistic competition in these industries (b) perfect competition in these industries (c) inter-industry trade between countries. (d) intra-industry trade between countries. (e) None of the above

+2
Answers (1)
  1. 18 April, 04:01
    0
    (b) perfect competition in these industries

    Explanation:

    If some industries exhibit internal economies of scale, we should not expect to see perfect competition in these industries because each firm behaves like a perfectly competitive firm and can thus be called a price taker. But when economies of scale are there because the firm itself increases its scale of production (i. e. it realizes internal economies of scale) the market structure becomes imperfectly competitive.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “1. If some industries exhibit internal economies of scale, we should not expect to see (a) monopolistic competition in these industries (b) ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers