Internal economies of scale means that
A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs.
B) firms will have lower profits after international trade begins, because costs will be higher than when they just focused on the domestic market.
C) consumers will have less choices once trade begins, because firms will be squeezed out of the market.
D) simply expanding the size of the market the firm serves reduces overall per unit costs, since the firm can spread costs over more output.
D
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Under fair-returns price regulation:
A) deadweight loss is likely to be maximized. B) deadweight loss is likely to be minimized. C) firms are less likely to innovate because they earn zero profits. D) firms are more likely to innovate because they earn positive profits.
Using the supply and demand equations for wheat above, determine how the equilibrium price and quantity vary with an increase in rainfall(r) holding other factors that influence supply and demand fixed
How do the equilibrium price and quantity change with an increase in income(I). Answer this comparative statics question using calculus.
The table in the textbook shows that income elasticity of food in industrialized nations is
a. higher than in less industrialized nations b. negative c. income elastic d. lower than in less industrialized nations e. the same as in less industrialized nations because food is an essential good
Management's power in collective bargaining sessions rests on
A. The firm's market power in pricing its product. B. The ability to lock out workers by closing stores or factories. C. The ability to fire nonunionized workers. D. The company's stock valuation.