An Industry Is Characterized by Scale Economies and Exists in Two

question 14

Multiple Choice

An industry is characterized by scale economies and exists in two countries.In order for consumers of its products to enjoy both lower prices and more variety of choice

• A)each country's marginal cost must equal that of the other country.
• B)the two countries must engage in international trade with each other.
• C)the monopoly must lower prices in order to sell more.
• D)the marginal cost of this industry must equal marginal revenue in the other.
• E)they must combine to become a multinational corporation.

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Definitions:

Faulty Device

An apparatus or piece of equipment that has a defect or a malfunction.

Negligence

A legal concept indicating failure to exercise the level of care that a reasonable person would in similar circumstances, leading to unintended harm to others.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract.

Industry Canada

A department of the Canadian government responsible for national economic development, innovation, and technology.