If Production Is Subject to Economies of Scale, _____

question 6

Multiple Choice

If production is subject to economies of scale, _____

• A) countries can gain from trade if each nation specializes.
• B) the domestic price will be above the world price and quantity produced will be below the free-trade level.
• C) higher output levels result in higher average production costs.
• D) every consumer gets to buy goods at their market-clearing prices.
• E) autarky will be preferred to trade.

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Definitions:

Original Observations

The initial data collected or measured directly in an experiment or study before any manipulation, transformation, or analysis.

House Ownership

The legal right of an individual or group to possess, use, and control a dwelling or residence.

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A societal construct related to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Cross-Classification Table

A table used to organize data according to two variables simultaneously, allowing for the examination of the relationship between them.