If there are increasing returns to scale, then it makes sense to consolidate operations into one production facility
A) if production above domestic demand can be exported.
B) only if the consolidation creates an absolute advantage versus other trading partners.
C) if the government subsidizes production.
D) Never, because then you lose the possibility of comparative advantage gains between the production facilities.
A
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What problem are mechanism designers attempting to overcome when they "design mechanisms" to provide public goods?
What will be an ideal response?
The decline in wholesale and consumer prices in 1929–30 was not as large as had been the decline in 1920–21
Indicate whether the statement is true or false
Which of the following statements concerning perfect competition is not true?
a. Firms are price takers. b. The demand curve facing an individual firm is horizontal. c. A firm's demand curve is identical to its marginal revenue curve. d. The firms produce differentiated products. e. If a firm raises its price, it will lose all of its customers.
A bond that never matures is known as a
a. perpetuity. b. an intermediary bond. c. an indexed bond. d. a junk bond.