If There Are Increasing Returns to Scale, Then It Makes

question 33

Multiple Choice

If there are increasing returns to scale, then it makes sense to consolidate operations into one production facility

• A)if production above domestic demand can be exported.
• B)only if the consolidation creates an absolute advantage versus other trading partners.
• C)if the government subsidizes production.
• D)Never, because then you lose the possibility of comparative advantage gains between the production facilities.

---

Definitions:

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Economic Development

The process of improving economic well-being and quality of life through growth and development, often through government policies and programs.

North America

A continent in the Northern Hemisphere and almost entirely within the Western Hemisphere; it includes countries such as Canada, the United States, and Mexico.

King George's War

The North American theater of the War of the Austrian Succession (1740-1748) involving French and British colonies.