Which of the following is FALSE about intraindustry trade?
A) Economies of scale allow firms to enjoy lower average costs.
B) It creates gains from trade.
C) It is due to comparative advantage.
D) It may involve heightened competition and lower prices for consumers.
E) It increases consumer choice.
C
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When firms set prices by adding a fixed percentage markup to marginal costs, they are likely
A) concerned with the rate of profit rather than its net amount. B) earning a satisfactory rather than a maximum profit. C) exploiting their customers. D) poorly managed. E) searching for the most advantageous prices to set on the basis of limited information.
Currently, the U.S. national income and product accounts (NIPA) use what type of price index to calculate real GDP?
A. Heavy-weight B. Fixed-weight C. Variable-weight D. Chain-weight