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.

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Definitions:

Psychosocial Perspective

A viewpoint that considers individual psychological development within the context of social relationships and societal structures.

Cognitive Development

The process by which a person perceives, thinks, and gains understanding of their world through the interaction and influence of genetic and learned factors.

Moral Development

The process through which individuals grow in their understanding of morals, ethical behavior, and the reasoning behind their own choices regarding right and wrong.

Postconventional

A stage of moral development where individuals make decisions based on internal principles and values, rather than conforming to societal norms.