If There Are Increasing Returns to Scale, Then It Makes

question 33

Multiple Choice

If there are increasing returns to scale, then it makes sense to consolidate operations into one production facility

• A)if production above domestic demand can be exported.
• B)only if the consolidation creates an absolute advantage versus other trading partners.
• C)if the government subsidizes production.
• D)Never, because then you lose the possibility of comparative advantage gains between the production facilities.