If Countries Specialise in the Production of Products Where They

question 2

Short Answer

If countries specialise in the production of products where they have comparative advantage unit costs may fall even further due to __________________. Is it "economies of scale"? "diseconomies of scale"? ""over capacity"?

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Paid Wages

Refers to the total amount of money paid by employers to employees for work performed during a specific period.

Decrease Stockholders' Equity

A reduction in the amount of capital contributed by shareholders plus retained earnings.

Financial Statement

A written record that conveys the financial activities and conditions of a business or entity, including the balance sheet, income statement, and cash flow statement.