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Basic Question 3 of 22

When unit costs of smaller firms are higher than those of larger rival firms, it is difficult for smaller firms to enter the market. This is an example of ______.

A. allocative efficiency
B. economies of scale
C. price discrimination

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly

CFA® 2025 Level I Curriculum, Volume 1, Module 1.