Explore BrainMass
Share

Explore BrainMass

    economies of scale

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which of the following examples explains how high cost of entry prevents potential entrants from entering an oligopolistic market?

    Brittney's Bakery makes chocolate chip cookies. She is a price taker in the market for baked goods.

    Jim's Jumbo Shrimp Company sells a product for which there are no substitutes.

    Sam's Seafood has a monopoly on bay oysters, so no other companies may enter the market.

    John's Band-aid Company cannot compete with Johnson & Johnson due to economies of scale.

    © BrainMass Inc. brainmass.com April 3, 2020, 8:55 pm ad1c9bdddf
    https://brainmass.com/economics/perfect-competition/prevent-potential-entrants-entering-oligopolistic-market-348377

    Solution Preview

    John's Band-aid Company cannot compete with Johnson & Johnson due to economies of scale.

    I will say this is the option because ...

    Solution Summary

    This solution analyzes economies of scale. The expert determines how to prevent potential entrants from entering oligopolistic market.

    $2.19

    ADVERTISEMENT