Question

In: Economics

Which of the following is a relatively direct determinant of market structure? Group of answer choices...

Which of the following is a relatively direct determinant of market structure?

Group of answer choices

economies of scale

the possible influence of medium-sized firms

the possible influence of the smallest firms

the influence of small firms

Solutions

Expert Solution

The answer is "Economies of scale"

Market structure is a system where buyers and sellers interact with each other and degree of competition and product offereing in the market prevails. For example perfect competition, oligopoly market , monopolistic competition market structure etc

Various determinants of Market structure are - No of buyers and sellers, Government, Economies of scale, Nature of Product, Factors of production, Entry Bariers etc

Rahul Sunny answered 1 year ago
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