When Economies of Scale Exist Over Wide Production Ranges for Two

question 51

Multiple Choice

When economies of scale exist over wide production ranges for two products,

• A)no specialization in production will occur but cost per unit will fall.
• B)the gain from trade is the reduction in cost per unit.
• C)specialization in production will occur but cost per unit will not fall.
• D)the gain from trade is the increase in cost per unit.
• E)the gain from trade is the increase in labor productivity.

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