How Economies of Scale Shape Market Structure I 60 Second Economics
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YouTubetutor2u
How Economies of Scale Shape Market Structure I 60 Second Economics
As firms grow, they can benefit from internal economies of scale, reducing their long-run average costs. This cost advantage allows larger firms to lower prices, undercut rivals, and potentially reshape an entire industry. When economies of scale are very large, markets tend to become more concentrated, often leading to oligopoly or even ...
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