Asked by
arlhet atienza
on Nov 12, 2024Verified
If production is subject to economies of scale,countries can gain from trade if each nation specializes in the production of a good.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Trade Gains
Benefits that countries obtain from engaging in international trade, such as increased variety of goods and specialization in production.
- Recognize the impact of economies of scale on trade benefits.
Verified Answer
GA
Learning Objectives
- Recognize the impact of economies of scale on trade benefits.