Product Differentiation and Internal Economies of Scale Yield Gains from Trade

question 34

Multiple Choice

Product differentiation and internal economies of scale yield gains from trade in the form of

• A) lower production costs and a greater variety of goods.
• B) higher profits and lower trade costs.
• C) the proximity-concentration effect.
• D) a proliferation of competitive firms.
• E) the substitution of immigration for foreign direct investment.

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Definitions:

Contingency Table

A tabular display of data that shows the frequency distribution of variables to study the relationship between them.

Blood Type

A classification of human blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

Probability Assignment

An academic or educational task involving the calculation or analysis of probabilities concerning certain events or scenarios.

Legitimate

Something that is lawful, justified, and recognized as valid or conforming to established rules and standards.