Problem
The lowest long-run average cost for whatsits is $50 per unit. To take advantage of economies of scale and produce whatsits at this low cost, a firm would need to build a factory that could produce 5,000,000 whatsits per year. There are only 20,000 people who are willing to pay anything to buy a whatsit per year. Why won't a large whatsits factory be built?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.