Driverless cars are currently being developed by a large number of firms. The Economist noted: "Thanks to powerful economies of scale, the roads may soon be ruled by no more than a handful of firms."

a. Explain this statement by the Economist and the resulting market structure using your economic theory.

b. Do you anticipate future long run profits in the driverless car industry? Why/why not? Explain your answer.

Graph may be used to solve the problem, many thanks