The United Kingdom started regulating the size of grocery stores in the early 1990s, and today the average size of a typical U. K. grocery store is roughly half the size of a typical U. S. store and two-thirds the size of a typical French store (Haskel and Sadun, 2011). What implications would such a restriction on size have on a store’s average costs? Discuss in terms of economies of scale and scope.
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