CIPS L4M2 Question Answer
Would economies of scale be a barrier to entry for potential new entrants to a market?
Yes, it allows established competitors to squeeze new entrants with a price war
No, it makes the buyer more powerful they can force down prices m a price war
No, the volume purchased by the buyer or industry is not important to the market
Yes, it is an aggressive competitive strategy one firm’s gam is another firm’s loss
TESTED 12 Nov 2025
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