An Industry Is Characterized by Scale Economies,and Exists in Two

question 13

Multiple Choice

An industry is characterized by scale economies,and exists in two countries.Should these two countries engage in trade such that the combined market is supplied by one country's industry,then

• A) consumers in both countries would have more varieties and lower prices.
• B) consumers in both countries would have higher prices and fewer varieties.
• C) consumers in the importing country only would have higher prices and fewer varieties.
• D) consumers in the exporting country only would have higher prices and fewer varieties.
• E) consumers in both countries would have fewer varieties at lower prices.

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Definitions:

Zygotes

The initial cell formed when a new organism is produced by means of sexual reproduction, resulting from the union of an ovum and a sperm cell.

Somatic Cells

Any cell in the body that is not a germ cell (sperm or egg), making up the major part of tissues and organs.

Ova Cells

Female reproductive cells or egg cells that, when fertilized by male sperm cells, can develop into an embryo.

Sperm Cells

Male reproductive cells designed to fertilize female eggs, containing genetic material for offspring.