Economies of scale will most likely lead to ________.

A) industry domination by a few large firms
B) expansion of international niche markets
C) investment in research and development
D) creation of employee training opportunities

Economies of scale refer to the cost advantages that a company can achieve by increasing production. As production increases, various costs (such as fixed costs) can be spread across a larger number of units, leading to lower average costs. This often enables larger companies to offer products at lower prices than smaller firms, which can create a barrier to entry for new competitors. Therefore, economies of scale are likely to lead to industry domination by a few large firms.