Which of the Following Is True

question 149

Multiple Choice

Which of the following is true?

• A) Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low.
• B) When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers.
• C) When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries.
• D) Economies of scale eliminate the potential gains from international trade.