Which of the Following Statements Is Accurate

question 45

Multiple Choice

Which of the following statements is accurate?

• A) In general, economies of scale are relatively easy-to-duplicate bases of cost leadership, but diseconomies of scale are not.
• B) In general, diseconomies of scale are relatively easy-to-duplicate bases of cost leadership, but economies of scale are not.
• C) In general, neither economies of scale nor economies are relatively easy-to-duplicate bases of cost leadership.
• D) In general, both economies of scale and diseconomies of scale are relatively easy-to-duplicate bases of cost leadership.

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Definitions:

Voluntary Export Restriction

An agreement by a country to limit the quantity of goods exported to another country to avoid tariffs or quotas.

Import Quota

A government-imposed limit on the quantity or value of a specific commodity that can be imported into a country.

Protective Tariff

A tax imposed on imported goods to shield domestic industries from foreign competition by making imported goods more expensive.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, used to protect domestic industries and manage trade balances.