External economies of scale often arise because similar firms
A) locate in the same geographic region.
B) collude to fix prices and increase profits.
C) have excellent internal logistics.
D) agree to cooperate to expand global trade.
E) have economies of scale in production.
A
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Use the following graph for a market to answer the question below.
Which of the following could not explain the indicated increase in equilibrium price from P1 to P2?
A. an increase in production costs B. an increase in consumer incomes C. an increase in the price of a substitute product D. a decrease in the price of a complementary product
Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?
A) Increases in the budget deficit are always associated with reductions in the trade deficit. B) Increases in the budget deficit are always associated with increases in the trade deficit. C) Increases in the budget deficit tend to be associated with increases in the trade deficit. D) Increases in the budget deficit tend to be associated with reductions in the trade deficit.
The demand for goods and services decreases with a rise in employment and income
Indicate whether the statement is true or false
The trading bloc that has eliminated all internal tariffs is
A. the European Union. B. NAFTA. C. Mercosur. D. The World Trade Organization.