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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Definitions:

Advertising Budget

The allocated amount of financial resources a company plans to spend on promoting its products or brand through various forms of media over a specific period.

Market Research

The systematic gathering, recording, analyzing, and interpretation of data about market conditions, competitors, and consumers for decision-making purposes.

Scheduling

The process of organizing, planning, and arranging activities or tasks within a given timeframe to ensure efficient use of time and resources.

Fear Appeal

A marketing strategy that uses the notion of fear to motivate the audience to take action, often by highlighting negative consequences of not using a product or service.