The Existence of Internal Economies of Scale

question 10

Multiple Choice

The existence of internal economies of scale

• A) cannot be associated with a perfectly competitive industry.
• B) may be associated with a perfectly competitive industry.
• C) is associated only with sophisticated products such as aircraft.
• D) cannot form the basis for international trade.
• E) focuses more on the industry than individual firms.

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Definitions:

GDP

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a specified period.

Per Capita Real GDP

A measure of the average economic output per person, adjusted for inflation, in a given country.

GDP Deflator

An indicator for the pricing levels of all new, domestically produced, consumable goods and services within an economy.

Population

The total number of people living in a specific area or country at a given time.