If Economies of Scale in an Industry Are So Extensive

question 92

Multiple Choice

If economies of scale in an industry are so extensive that a single firm could serve the entire market at a lower cost than if the market was split between two or more firms, this industry is called a(n)

• A)conglomerate
• B)natural monopoly.
• C)oligopoly.
• D)restraint of trade.

---

Definitions:

International Sale of Goods

Pertains to a commercial transaction that crosses national boundaries, governed by specific legal frameworks like the United Nations Convention on Contracts for the International Sale of Goods (CISG).

Goods But Not Services

A classification that refers to tangible commodities or physical items that are bought, sold, or traded, excluding intangible offerings such as services.

Trade Growth

An increase in the exchange of goods and services between countries, often measured by the rise in exports and imports.

FOB

Free On Board, a term in international trade that indicates whether the seller or buyer is responsible for goods damaged or destroyed during shipping.