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Economics A Level (DONEEEEEEE)

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Pregunta:

Why can Economies of Scale lead to Monopoly Power?

Autor: eric_galvao



Respuesta:

-When the Firm's AC falls, it can set a Lower Price. This undercuts their Opponents -The Firm thus gets a Bigger market Share as it Offers Products at Prices lower than their Competitors -Eventually, the Firm can Force all other Rivals out and become the only Supplier of the Product. Monopoly


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