How does an industry characterized as having economies

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Reference no: EM131839643

How does an industry characterized as having economies of scale effects serve as a barrier to entry? Explain this for both supply-side and demand side effects.

Besides explaining what the barrier means, explain how a potential new entrant specifically is going to be at a disadvantage.

How do you identify/measure the advantage for incumbent firms - give me two viable measures/metrics that would identify/measure this advantage.

For each metric explain why the metric is especially meaningful for illustrating your point and addressing the topic of economies of scale in an industry serving as a barrier to entry.

Additionally, what are the options for a potential entrant who faces this barriers, still wants to enter the industry, be competitive, and not accept below-normal performance (give me 1 viable option)?

Reference no: EM131839643

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