According to the New Trade Theory,trade,through Its Impact on Economies

question 91

Multiple Choice

According to the new trade theory,trade,through its impact on economies of scale,is most likely to:

• A) reduce the volume of the goods produced.
• B) decrease the variety of goods available to consumers.
• C) decrease the average costs of goods.
• D) inhibit first-mover advantages in all industries.
• E) only benefit nations that differ in resource endowments or technology.

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Definitions:

Average Time

The mean value that represents the central tendency of a set of times, often used to summarize the typical amount of time required for a process.

Utilization Factor

A measure that assesses how effectively a production resource is used, typically comparing actual output to maximum possible output.

Poisson Distribution

A statistical probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Negative Exponential Distribution

A probability distribution used to model time between independent events that occur at a constant average rate.