Discuss the cost structure of the industry. (Obviously, this will be a qualitative discussion – I do not expect you to provide information on the cost functions that firms face.) What are the significant cost factors (e.g., specific raw materials, R&D expenditures, etc.)? Are there are economies of scale or economies of scope? Where do these economies come from (e.g., high entry costs, high R&D costs, etc.)?

 

 

 

 

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