If there are significant economies of scale in an industry, then

A) a firm that is large may be able to produce at a lower unit cost than can a small firm.
B) a firm that is large will have to charge a higher price than will a small firm.
C) entry to that industry will be easy.
D) firms must differentiate their products to earn economic profits.

Economies of Scale

The financial advantages gained by enterprises from their operational size, where the per-unit cost decreases as the operation size increases.

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.

Economic Profits

Profits that exceed both the explicit and implicit costs of a business, including a normal return on investment.