Author Question: How can economies of scale lead to monopoly?[br][br][b][color=#FBB117]Question ... (Read 92 times)

Shelles · **on:** Jun 30, 2018

How can economies of scale lead to monopoly?

Question 2

Foreign exchange market intervention is most effective when:
a. each country's political leaders agree to cooperate fully with the process.
b. leading economists in each country believe that intervention is needed.
c. permanent differences between the free market exchange rate and the fixed exchange rate are expected.
d. temporary differences between the free market exchange rate and the fixed exchange rate are expected.
e. all the countries restrict the international movement of goods and services.

chevyboi1976 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A single firm, which experiences economies of scale over the entire range of industry demand, can provide a good or a service to the market at a lower average cost than can multiple firms. This is frequently the case with utilities in a local community.

Answer to Question 2

d