The concept of economies of scale becomes especially relevant to international trade when it enables
a. numerous small producers to supply the entire country.
b. one or two large producers to supply the entire country.
c. numerous large producers to supply the entire country.
d. one or two small producers to supply the entire country.
b. one or two large producers to supply the entire country.
You might also like to view...
A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. The club could be soundproofed for a cost of $5,000 or move at a cost of $8,000 . The class can't soundproof enough to overcome the music, but could be moved for $4,000 . According to Coase, a socially optimal solution can be achieved if
a. the local government purchases the building b. the building is torn down c. property rights to be noisy are granted to the nightclub d. property rights to a quiet environment are granted to the meditation class e. both the nightclub and the meditation class relocate
The production possibilities curve illustrates
A. The existence of unlimited wants and resources. B. The limitations that exist because of scarce resources. C. That there is no limit to the level of output. D. That there is no limit to what an economy can produce.