NAFTA's Objectives Include To

question 19

Multiple Choice

NAFTA's objectives include to:

• A) create trade barriers between the U.S., Mexico, and Canada.
• B) increase investment opportunities.
• C) enforce real property rights.
• D) All of these are objectives.

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Definitions:

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are accounted for.

Long-run Total Cost

The overall expenses incurred by a firm when all inputs are variable, reflecting costs over a time when firms can adjust all factors of production.

Long-run Average Total Cost

The per unit cost of production when all inputs, including both fixed and variable costs, are adjusted to their optimal levels over time.