Question

A difficult economic environment exists for service industries for all but one of the following reasons.

A) Relatively high overall entry barriers.
B) Product substitution.
C) Minimal opportunities for economies of scale.
D) Exit barriers.

Answer 1

Minimal opportunities for economies of scale is not a difficult economic environment faced by service industries.

Step-by-step explanation:

Monopolies in service industries face a difficult economic environment for several reasons, but minimal opportunities for economies of scale is not one of them. Economies of scale refer to the cost advantages a company can achieve by increasing its production capacity. It allows companies to produce goods or services at a lower cost per unit as they increase their scale of operations. In service industries, such as healthcare or consulting, economies of scale can still be achieved through factors like specialization, technology, or efficient processes.