The Existence of Internal Economies of Scale

question 10

Multiple Choice

The existence of internal economies of scale

• A) cannot be associated with a perfectly competitive industry.
• B) may be associated with a perfectly competitive industry.
• C) is associated only with sophisticated products such as aircraft.
• D) cannot form the basis for international trade.
• E) focuses more on the industry than individual firms.

---

Definitions:

Bilateral Contract

A contract in which both parties make promises.

Consideration

In contract law, the mutual promise to exchange benefits and detriments between parties.

Premiums

The amount paid for insurance coverage or the payment above the nominal value of a security when issued.

Inland Marine Insurance

An insurance contract that covers goods that are moved by land carriers such as rail, truck, and airplane.