The Opportunity to Exploit Economies of Scale Is One of the Gains

question 7

Multiple Choice

The opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. These gains will be the result of a decrease in

• A) world prices of imports.
• B) the consumption distortion loss triangle.
• C) the production distortion loss triangle.
• D) international labor mobility.
• E) excessive entry and inefficient business practices.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, based on the weight of its cost in total inventory.