Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,

a. there will be approximately 20 firms in the market
b. we should expect to see a few large competitors
c. we should expect to see many small competitors
d. we should expect a natural monopoly to emerge
e. minimum efficient scale is too small for perfect competition to exist

ANSWER:

b. we should expect to see a few large competitors