All of the Following Were Direct Benefits Reaped by the Americans

question 68

Multiple Choice

All of the following were direct benefits reaped by the Americans from the mercantile system of Britain except  

• A) British allowed the Americans to freely trade with other countries and compete on the open market.
• B) London paid high prices for ship parts to American producers.
• C) Virginia tobacco planters enjoyed a monopoly in the British market.
• D) protection of the world's mightiest navy and army without a penny of cost.
• E) some British merchants were not allowed to compete with the American colonial merchants.

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Definitions:

Diseconomies of Scale

occur when a company or business grows so large that the costs per unit increase, causing efficiency to decrease.

Real Cost

The total cost of producing a good or service, including all resources consumed and opportunity costs, in contrast to its financial cost.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other factors remain constant.

LRATC

Long-Run Average Total Cost, referring to the average cost per unit of output when all inputs are considered variable over time.